



What is the optimal level for the M7 ratio?
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- How does company size affect the M7 ratio?
- Can the M7 ratio be manipulated?
- What are the challenges of international comparisons using the M7 ratio?
- Can the M7 ratio be used for private companies? What adjustments might be needed when calculating the M7 ratio for private companies?
- What are the typical M7 ratio thresholds used by lenders? Can the M7 ratio be used for internal performance management?
- Are there any industry-specific ratios that are referred to as "M7 ratio" or something similar?
- What are the limitations of using the M7 ratio for forecasting? Is the M7 ratio a leading or lagging indicator?
- How should analysts consider hedging activities when interpreting the M7 ratio? What is the impact of inflation accounting on the M7 ratio?
- What are the common mistakes in calculating the M7 ratio? Does the M7 ratio consider non-financial factors?
- Explain each component of the M7 ratio formula. What are the numerator and denominator of the M7 ratio?
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