Ratios are only useful for large firms where their ratios may be compared with industry averages.

Question

Quizplus · Accepted Answer

Ratios can be useful for both large and small firms. They provide insight into a company's financial performance and can be used to make comparisons to industry averages, competitors, or historical trends. Small firms can also use ratios to monitor their own financial health and identify areas for improvement.

Ratios Are Only Useful for Large Firms Where Their Ratios