So What?!
vLook at ratio changes
over time OR as compared
to other firms in a similar industry.
vWatch for changes
vEX:
if gross profit margin looks like:
v1997
= .24, 1998 = .22, 1999 = .19
vPerhaps you should
look at COGS – if COGS has NOT
changed as a % of sales, then expenses are rising elsewhere.