Financial analysts are aware of the many limitations of ratio analysis as a technique of financial statement analysis. Describe the advantages and disadvantages of ratio analysis. Explain ways that ratios may be misleading to an analyst. For example, ratios are retrospective and do not directly incorporate forecasts of future performance.

Financial analysts are aware of the many limitations of ratio analysis as a technique of financial statement analysis. Describe the advantages and disadvantages of ratio analysis. Explain ways that ratios may be misleading to an analyst. For example, ratios are retrospective and do not directly incorporate forecasts of future performance.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 1QTD

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