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peach3379 peach3379
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9 years ago
As the world economy becomes more integrated, one of the questions facing financial ratios can be compared across national boundaries.  For example, at one time the average P/E ratio for Japanese companies was around 60, and the average for U.S. companies was between 15 and 20. (A P/E ratio in excess of 30 is considered quite high in the United States.) This dramatic variation was a result of differences in the two national economies and in their accounting methods. This dramatic variation was a result of differences in the two national economies and in their accounting methods. In addition to differences in accounting methods, what other challenges are faced by financial analysts in comparing the financial ratios of a U.S. company to those of a Japanese, German, or British company?
Source  Stice & Stice Intermediate Accounting 2012 Chapter 22 Case 7 & 8
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Educator
9 years ago
Hi peach3379, could you provide us an update on what you did to answer this?

Apologies for not finding an answer.
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peach3379 Author
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9 years ago
I answered it the best way I could thanks.
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9 years ago Edited: 9 years ago, padre
I answered it the best way I could thanks.

Nice! Mind sharing it?
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peach3379 Authorpeach3379
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9 years ago
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9 years ago
Thank you. I didn't realize there was so much to it.
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