Ratios used to compares a firm's ratios against average ratios for other companies in the firm's industry:

Question

Quizplus · Accepted Answer

Industry comparative analysis is the best choice for comparing a firm's ratios against average ratios for other companies in the firm's industry. This type of analysis allows the firm to see how they are performing relative to their competitors and the industry as a whole. Cross-sectional analysis is a more general term that refers to comparing multiple companies' financial information, not just within a specific industry. Ratio analysis is a general term that refers to analyzing a company's financial ratios. Just-in-time analysis is not a relevant term in this context.

Ratios Used to Compares a Firm's Ratios Against Average Ratios