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In order for financial ratios to be more useful, they should be:

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User Voonic
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In order for financial ratios to be more useful, they should be comparable. Comparability is the ability to compare financial ratios of different companies or industries. It is achieved by using standardized accounting principles and methods of calculation 12. Financial ratios should also be relevant to the decision-making process. They should be based on the company’s objectives and the user’s needs 23. Finally, financial ratios should be timely. They should be calculated and reported in a timely manner to ensure that the information is up-to-date and relevant

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User Greedsin
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