Just like with most tools, ratio analysis has benefits and limitations. Please discuss at least one benefit and one limitation of ratio analysis.

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
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Just like with most tools, ratio analysis has benefits and limitations. Please discuss at least one benefit and one limitation of ratio analysis.

 
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