Financial ratios are used to perform analysis of:
A) a company's historical performance
B) a company's performance relative to its peers
C) a company's historical performance and its relative performance to its peers
D) a company using only a single ratio

Question

Quizplus · Accepted Answer

Financial ratios are used to analyze both a company's historical performance and its performance relative to its peers. By comparing a company's ratios to those of its competitors, investors and analysts can gain insights into its strengths and weaknesses and identify potential areas for improvement. However, it's important to consider a range of ratios and other financial metrics when evaluating a company, rather than relying solely on a single ratio.

Financial Ratios Are Used to Perform Analysis Of