there are many financial ratios such as IRR, for a company. then the company invest by buying fix asset or material, the financial ratios become worse. so, we look at competition and growth prospect before looking at the financial ratios. in other words, we consider financial ratios in context of competition and industry demand. only then, we realize the long term growth of a company. we benchmark the financial ratios of companies in the same industry to realize the differences among companies and the competitive advantages of companies

strategic analysis come into our care at the end. strategic perspective will free us from analysis of financial ratios.