Ratios provide one of the most basic mechanisms to assess company performance. But most users do not fully understand the key inputs to these measures (which are overwhelmingly accounting-based), their limitations, or their broader roles in assessing a company’s activities. In this session, we will provide a framework for analyzing any business, provide a schematic for understanding the broad classes of ratios, and show how these ratios can be used individually and collectively to assess corporate performance.
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