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In ratio analysis, the age of a plant refers to the duration since its establishment or construction, which can influence its operational efficiency and financial performance. This age can be assessed through ratios such as the asset turnover ratio or depreciation ratios, which reflect how effectively the plant utilizes its assets over time. An older plant may have lower efficiency due to outdated technology or higher maintenance costs, impacting profitability. Conversely, newer plants may offer higher efficiency and lower operational costs, affecting the overall financial health of a company.

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