Comparative ratio analysis
Comparative ratio analysis is an analysis that compares a firm's own ratios to other leading companies in the same industry. This technique is also known as benchmarking.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Comparative ratio analysis. Compares a firm's own ratios to other leading companies in the same industry. This technique is also known as benchmarking.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
