Ratio analysis brings the information on financial statements into sharper focus so that a firm's managers and others can measure its productivity,profitability,and sources of financing relative to other firms.

Question

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Ratio analysis,calculations that measure an organization's financial health,brings the complex information from the income statement and balance sheet into sharper focus so that managers,lenders,owners,and other interested parties can measure and compare the organization's productivity,profitability,and financing mix with other similar entities.

Ratio Analysis Brings the Information on Financial Statements into Sharper