A company has a tool to monitor its progress. This tool analyzes the company's finances and its strategy. The executives use this tool to understand how the firm responds to shareholders, how customers view the firm, what processes to focus on to successfully use its competitive advantage, and how it can use innovation to improve its performance. -The tool used is the Financial Ratio
Explanation:
Financial ratios are used to understand the relationships between the various items of a financial statement. The financial ratios analysis the historical data of a company and it is being used by the management to understand the internal strength and weaknesses of the company and to analyse the financial performance in the near future.the shareholders use these ratios to compare companies in the same industry.
A company has a tool to monitor its progress. This tool analyzes the company's finances and its strategy. The executives use this tool to understand how the firm responds to shareholders, how customers view the firm, what processes to focus on to successfully use its competitive advantage, and how it can use innovation to improve its performance. -The tool used is the Financial Ratio