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Only as a starting point. As an analyst, you must then carefully compare your company to its competitors in the industry. Not all companies are alike and therefore one can not apply one set standard to evaluate it. You must compare you numbers to year over year figures to identify trends either bad or good. Finally, these numbers must still be evaluated against the integrity of the company's financial reporting and their accounting style. Only as a starting point. As an analyst, you must then carefully compare your company to its competitors in the industry. Not all companies are alike and therefore one can not apply one set standard to evaluate it. You must compare you numbers to year over year figures to identify trends either bad or good. Finally, these numbers must still be evaluated against the integrity of the company's financial reporting and their accounting style.

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Q: Is there any validity in rule-of-thumb ratios for all corporations?
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