In isolation, which of the following is TRUE about a financial ratio? Select one: a. Useful only for past performance b. Useful piece of information c. Useful only for future predictions d. Useless piece of information

Why are common sized financial statements useful? How do they differ from traditional financial statements in the way that they are calculated?

__________ considers the impact of changing one or more inputs or assumptions on the resulting answer (output) of an analysis. a.Sensitivity analysis b.Capital rationing c.Expected value analysis d.The net present value method

Q: Choose all that apply: The following ratios may be impacted by the adoption of the new standard: A. Revenue growth B. Net margin C. Return on equity D. Price to earnings multiples E. Return on assets F. Debt to equity G. Current ratio The Question is: Why "Debt to equity" and "Current ratios" may be impacted?

Explain why the acid-test ratio is a better measure of financial health than the current ratio.

What are some limitations of financial performance measures?

What are some of the problems is using AFN equation to estimate AFN rather than the pro-forma financial statement method?

Using common-size balance sheet percentages to project individual assets, liabilities, or shareholders' equity has all of the following shortcomings except:  a. Individual assets, liabilities, and shareholders' equity are independent of each other.     b. The common-size percentages do not permit the analyst to easily change the assumptions about the future behavior of an individual asset or liability.     c. Individual assets, liabilities, and shareholders' equity are not independent of each other.     d. If a company experiences changing proportions for investments in securities among its assets, other asset categories may show decreasing percentages in some years even though their dollar amounts are increasing.

What are some uses and limitations of financial ratios?

What factors are frequently ignored in financial analysis? Why?