A cyclical company is one whose earnings demonstrate a repeating pattern of significant increases and decreases,and the historical performance must be assessed in the context of the cycle.

Question

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A cyclical company's earnings are directly impacted by the business cycle, causing significant increases and decreases over time. Therefore, historical performance must be evaluated within the context of the cycle to accurately assess the company's overall performance.

A Cyclical Company Is One Whose Earnings Demonstrate a Repeating