The purpose of using financial ratios is to
A)save space on your financial statements.
B)share your financial figures with your advisors.
C)help analyze your raw data to compare how well you are doing.
D)better understand how you are managing your financial resources.
E)both C and D.

Question

Quizplus · Accepted Answer

Financial ratios help analyze your raw financial data to compare how well you are doing and better understand how you are managing your financial resources. By using financial ratios, you can compare your company's performance to industry norms to see areas where you excel and where you need to improve. This information helps you make better financial and business decisions.

The Purpose of Using Financial Ratios Is to