Why is it sometimes misleading to compare a companys


Question: 1. How might

(a) seasonal factors and

(b) different growth rates distort a comparative ratio analysis? Give some examples. How might these problems be alleviated?

2. Why is it sometimes misleading to compare a company's financial ratios with those of other firms that operate in the same industry?

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Accounting Basics: Why is it sometimes misleading to compare a companys
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