Which of the following does ratio analysis in an industry set-up help compare? (Note: More than one option(s) maybe correct.) ans1:A company's performance between different time period ans2:A company's performance to anotherans3:A company to industry standard ans4:None of the above

The objective of this question is to understand the various comparisons that can be made using ratio…

Answered: Which of the following does ratio…

Entrepreneurial Finance

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ISBN:9781337635653

Author:Leach

Publisher:Leach

ChapterC2: Spatial Technology, Inc.

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Comparative ratio analysis can be applied when analyzing performance of the company for one period against another period, performance of the company against another company and/or performance of the company against the industry (or a group of companies with the same business activities). Is it true or false?
Common-Size Analysis. Common-size analysis is a simple way to make financial statements of different firms comparable. What are possible shortcomings of comparing two different firms using common-size analysis?
There are various limitations to employing the PE Ratio for company to company comparisons. Describe several of the limitations. A better measure would be to employ the PEG Ratio, how would you calculate?
When using ratio data for comparison to other companies, analysts should: not interpret the data as a way of determining which companies will survive and outperform others. only use data from one time period. not assume that all companies in the industry are in direct competition. use industry averages, rather than individual companies, for the comparison.
Which is not a potential problem of utilizing ratio analysis? A. trends and industry averages are historical in nature. B. financial data may be distorted due to price-level changes. C. firms within an industry may not use similar accounting methods. D. all of the above E. answer not given
Compare current performance of firms to its past performance is called cross-sectional. Select one: O True O False
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Please see the attached graph for questions below. What is the difference between the two companies on this ratio? What is a plausible explanation as to why they would differ? Is one company clearly different than the other? Are there economic or end-market influences that explain why the ratios differ? What might they be? Over time, is each company’s overall financial performance improving, declining, or is something strange going on? Do you think evaluating financial statements is a good idea? What do you regard as some of the shortcomings of financial ratio analysis?
Which of the following is a basic limitation associated with ratio analysis The usefulness of a single ratio by itself. The lack of comparability among firms in a given industry. The use of fair value accounting costs. The use of future-oriented data items in accounting.
What does a relatively high ratio compared with those of competitors in the same industry indicate?
Which of the following is not included in the Dupont framework? a. a measure of profitability c. a measure of leverage b. a measure of efficiency d. a measure of market share
Compose a financial analysis based on your evaluation of the ratios. Comparison between 2020E ratios and industry averages - (c) Asset utilization ratios; (1) Are the 2020E ratios above, below, or equal to the industryaverages? 2) Is this a good thing or a bad thing for the company? and (3) What can be done to improve the weak ratios or to maintainthe strong ones? (d) Profitability ratios (1) Are the 2020E ratios above, below, or equal to the industryaverages? ( 2) Is this a good thing or a bad thing for the company? and (3) What can be done to improve the weak ratios or to maintainthe strong ones? (e) Market performance ratios. (1) Are the 2020E ratios above, below, or equal to the industryaverages? ( 2) Is this a good thing or a bad thing for the company? and (3) What can be done to improve the weak ratios or to maintainthe strong ones?

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Which of the following does ratio analysis in an industry set-up help compare? (Note: More than one option(s) may be correct.) ans1:A company's performance between different time period ans2:A company's performance to another ans3:A company to industry standard ans4:None of the above