Answer:

A company that has different product lines might face the different growth rates for particular product during particular period and therefore, at the time when company prepares its comparative ratio analysis for entire figures as a total or whole for company, i.e., total expenses ,total sales from all products, net income from all the products put together, it might not provide correct and acurate picture due to the different growth rates of individual product.

On the whole, if it is increase in sales by 10%, then the company might be happy without it knowing that some other products or product has decreased the sales revenue.

To solve out this particular problem , the comparative ratio analysis need to be prepared for the each product of company individually. It would make comparison very meaningful & also help to the management for pointing out about the products that has higher performance or lower performance