accounting ratio

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Ratios are used for many purposes, performance measurement is one such application. However, not all performance measures are expressed as a ratio. Do some research on the Internet to learn about operating leverate, ROI, EVA, RI. You will note that there are variations in the computations of a particular measurement. Consistency in application is the key.

 

Use information from the latest financial statement for Caribou Coffee or Starbucks to compute the measuements you researched. 

 

Reflect on the advantages and disadvantages of these performance measures. Choose your preferred measure and explain your rationale.

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