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Answer Posted / thimmappa poojari
One of the most important tool used for financial reports
analysis in which quantities of amounts are converted into
quantitative ratio for meaningful comparisions with past
financial reports. And also to comapre the
performance /status with that of other simliar / different
industry / firms.
Ratio analysis is a base to understand & to take action on
weaknesses or strengths of the particular firm/business and
so it's a trend setter.
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