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Why Bother Calculating Business Ratios So why would anyone want to use business ratios? Ever thought of buying a company? If you're a stock market investor, you already have. But investing is a tricky business, according to Jon Birger, especially since "public confidence in reported earnings has been crushed by the deceptions of Enron, WorldCom and other corporate fraudsters " (Birger). So how do you know how well these companies are doing? Well, if you're interested in buying a business, investing in one, lending money to one, selling goods to one or maybe you're just an internal manager seeking to gain a perspective on the business' strengths and weaknesses, you may want to know how to perform what is sometimes referred to as Financial Ratio Analysis. Let's say we've just come upon a big lump of cash and would like to roll the dice and win big by investing the stock market....

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