Ratio analysis is quantitative analysis of information contained in a company's financial statements. Common-size analysis converts each line of financial statement data to an easily comparable amount measured as a percent. Both ratio analysis and common size analysis are important tools used to analyze the financial results of corporations. Explain the importance of both types of analysis. In your explanation, it is imperative you provide examples of ratios with their measurement. Do you believe ratio analysis is better than common size analysis or vice versa? Why or why not

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To evaluate various aspects of an entitys operating and financial performance for example its efficiency liquidity profitability and solvency we use r... View the full answer