MANAGEMENT

BUISENESS MANAGEMENT

FINANCIAL MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
____ used to compare different firms at the same point in time.
A
Industry comparative analysis
B
Cross-sectional analysis
C
Trend analysis
D
Combined analysis
Explanation: 

Detailed explanation-1: -Cross-sectional analysis is a type of analysis where an investor, analyst or portfolio manager compares a particular company to its industry peers.

Detailed explanation-2: -The ratios that are used to compare different firms at the same point in time belong to a category of an analysis called the cross-sectional analysis.

Detailed explanation-3: -In medical research, social science, and biology, a cross-sectional study (also known as a cross-sectional analysis, transverse study, prevalence study) is a type of observational study that analyzes data from a population, or a representative subset, at a specific point in time-that is, cross-sectional data.

Detailed explanation-4: -Key Takeaways Ratio analysis compares line-item data from a company’s financial statements to reveal insights regarding profitability, liquidity, operational efficiency, and solvency. Ratio analysis can mark how a company is performing over time, while comparing a company to another within the same industry or sector.

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