Ratio analysis that involves comparing a company's financial ratios with those of competing companies and/or industry norms is called ____, while ratio analysis that focuses on changes in a firm's financial ratios over time is called ____.

Question

Quizplus · Accepted Answer

Cross-sectional analysis compares a company's financial ratios to those of other companies or industry norms at a specific point in time, while longitudinal analysis (also known as time-series analysis) examines changes in financial ratios over time to identify trends and patterns.

Ratio Analysis That Involves Comparing a Company's Financial Ratios with Those