Financial ratios are used to compare a firm's performance over different time periods,compare the firm's performance to industry averages,and compare a firm's performance with
A) overall business standards.
B) the performance of international firms.
C) the performance of suppliers.
D) non-financial ratios.
E) the performance of competitors.

Question

Quizplus · Accepted Answer

Financial ratios are commonly used to compare a firm's performance with its competitors. By analyzing financial ratios of different firms within the same industry, investors and analysts can gain insights about each company's strengths and weaknesses, as well as identify potential investment opportunities.

Financial Ratios Are Used to Compare a Firm's Performance Over