Identify a True Statement About Ratio Analysis

Identify a true statement about ratio analysis.

A) Entrepreneurs must evaluate their firms on all ratio analysis figures to gain a proper understanding of their firms' operational health.
B) A ratio analysis only provides insight into a firm's health when compared over time or to the ratios of other firms.
C) While they are valuable tools, ratio analysis is ultimately less useful than nonfinancial data analysis methods.
D) Because of the large amounts of financial data it requires, a ratio analysis cannot be performed by relatively new entrepreneurial firms.