Limitations of financial ratio analysis
discuss objective and limitation of time series analysis
Ratios can provide clues to the company's performance or financial situation. However, it will not show whether performance is good or bad. Ratio's require additional quantitative information for an informed analysis to be made.
Ratio Analysis = Current Asset / Current Liabilities
The ratio analysis is useful for inter firm comparison which basically implies that a company compares its performance with that of its industry peers. Ratio analysis is very important in simplifying the accounting figures to make then understandable to a common man.
The limitations for the profit margin ratio is in comparing different industries. Profit margins between say a supermarket and an aircraft manufacturer would vary considerably.
discuss objective and limitation of time series analysis
what is ratio analysis
scope of ratio analysis
Ratios can provide clues to the company's performance or financial situation. However, it will not show whether performance is good or bad. Ratio's require additional quantitative information for an informed analysis to be made.
Ratio Analysis = Current Asset / Current Liabilities
Ratio Analysis = Current Asset / Current Liabilities
Indicate the usefulness and limitations in using ratios to do a trend analysis Sheryl Smith
How dose the cost income ratio is calculated in the banking model?
What do you understand by cost analysis
ratio analysis
What ratio or other financial statement analysis technique will you adopt for this.
1.Commansize Balence sheet analysis 2.Comparative Balence sheet analysis 3.Trend analysis 4.Ratio Analysis