Comparative and Common-size Financial Statements
We often use comparative financial statements in order to compare different financial ratios of a firm with the industry averages and other peers in the industry whereas we use common-size financial statements in order to compare performance of a firm or two firms over time.Financial ratios in isolation mean nothing. We need to observe them change over time or compare financial ratios of a cross section of firms in order to make sense of them.
Subscribe for share market intraday tips here.
You
should Trade Less But Trade Accurately & this is Achieved with our Tip.
