Which statement about comparative ratios is correct?
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Comparative ratios are available from a number of sources, and the ratios presented by different sources have the same definitions.
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In a ratio analysis, we only need to compare a company’s ratios with those of other firms in the same industry; that is, with industry average figures.
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The technique of comparing a company’s ratios with industry average figures is called benchmarking.
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In a ratio analysis, many companies also benchmark various parts of their overall operations against top companies, whether they are in the same industry or not.