Compare the financial ratios with each of the preceding three (3) years.

Fin 571 week 3 individual assignment interpreting financial results

When comparing the financial ratios for each of the preceding three years (i.e. 2014 with 2013; 2013 with 2012; and 2012 with 2011), it is important to look at each ratio in order to get a comprehensive picture of the company’s finances over time. For example, if we look at the current and quick ratios for one particular year, we can see how much liquidity (or lack thereof) exists in that period compared to previous/following periods by looking at these numbers side-by-side.

Moreover, it is also useful to compare these calculated financial ratios against industry benchmarks. While individual companies can use their own set of metrics as benchmarks when evaluating performance and trends over time, there are general industry standards which provide a framework from which they may judge themselves against peers – providing an accurate representation despite being subject variation due market specific conditions encountered along way sometimes! Thus – while assessing what\’s been done based on past data people/investors etc able gain better understanding as where could space terms both present future thanks comparative analysis conducted thus far too doing so all helps get clearer expectation going forward enabling more informed decisions taken course about.