Question: ABC Corp's ROE has been decreasing over the last five years. How can you use financial statements to find the reason why? The reason for

ABC Corp's ROE has been decreasing over the last five years. How can you use financial statements to find the reason why?

The reason for a change in performance is almost always revealed in financial statement numbers.
The historic performance of a company is the best place to find a reason.
Use recent financial ratios because they will usually provide the reason.
Use the statements to find trends, but keep in mind there is usually not a single reason.

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