Whether a particular financial ratio is considered good or bad depends, in part, on the industry.

Name: Whether a particular financial ratio is considered good or bad depends, in part, on the industry.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Financial ratios are relative measures and different industries might have unique requirements or patterns. Therefore, the interpretation of financial ratios in isolation can lead to incorrect conclusions without contextual analysis of industry standards.

Whether a Particular Financial Ratio Is Considered Good or Bad