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Guide To Analysing Companies, Fifth Edition by Bob Vause

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11 Practical examples of ratio analysis

The aim of this section is to provide useful examples of the application of ratio analysis. Are a number of reasonably representative benchmarks for five sectors and six countries against which you can compare companies you are interested in. The ratios are, as far as possible, calculated from the 2006–07 financial statements of mature, quoted companies with a track record of consistent profitability in their sector.

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