CAT / FIA FMA Syllabus F. Performance Measurement - Measures of financial performance - Notes ^{1 / 15}

A key aspect of performance measurement is ratio analysis. 

Ratios are of little use in isolation. 

Firms can use ratio analysis to compare:

1. budgets, for control purposes

2. last year’s figures to identify trends

3. competitors’ results and/or industry averages to assess performance.