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It Is Often Said That Anyone with a Pencil Can

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It is often said that anyone with a pencil can calculate financial ratios,but it takes a brain to interpret them. What kinds of things should an analyst keep in mind when evaluating the financial statements of a given firm?


Definitions:

Market Share

The percentage of total sales in a market captured by a particular company, product, or brand.

Direct Investment

A type of investment in which a company builds or buys businesses in a foreign country.

Foreign Subsidiary

A company owned or controlled by another corporation, person, or entity, based in a country different from the parent company.

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