The most ideal approach to analyze a financial statement is by studying financial ratios. Financial ratios help decipher the outcomes and compare with previous years and other companies in the same industry. A typical financial ratio uses information from the financial statement to calculate its value. Accounting policies may vary across organizations and distinctive financial years. Financial ratios can be to some degree characterized into different classifications such as profitability ratios, leverage ratios, valuations ratios, and operating ratios. These financial
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