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question 7

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DNA:


Definitions:

Common-sized Financial Statements

Financial statements that present all items in percentage terms. The balance sheet items are presented as a percentage of assets, and income statement items are presented as a percentage of sales.

Industry Averages

Statistical benchmarks that represent the standard or average performance in a particular industry, useful for comparison and analysis.

Solvency

A measure of a company's ability to meet its long-term financial obligations, indicating its financial health.

Current Liabilities

Financial obligations or debts of a business that are due within a year or within its operating cycle if longer.

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