The cause of changes in key ratios must be investigated before drawing conclusions.

Question

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Key ratios provide important information about a company's financial performance, but they do not tell the full story. Before drawing conclusions based on changes in these ratios, it is important to investigate the underlying causes for the changes. For example, a decrease in profitability could be due to higher expenses, lower sales, or a change in accounting methods, among other factors. By understanding the underlying causes, investors and analysts can make more informed decisions about a company's financial health.

The Cause of Changes in Key Ratios Must Be Investigated