The Changing Role of SMEs in Global Business by Unknown

Author:Unknown
Language: eng
Format: epub
ISBN: 9783030458317
Publisher: Springer International Publishing

The information obtained from a ratio is minimal. The method assumes the study of the evolution of the same ratio over time and its interconnection with other ratios. For example, the high General Liquidity ratio may represent a situation of strong liquidity (good management) or an excess of non-yielding cash funds (poor management).

A ratio can evolve positively by improving or worsening one of its components. For example, an increase in the Profitability of Sales ratio may occur due to a decrease in sales volume.

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