Ratio analysis is an important component of evaluating company performance. It can provide great insights into how a company matches up against itself over time and against other players within the industry. However, like many tools and techniques, ratio analysis has a few limitations and weaknesses. Which of the following statements represent a weakness or limitation of ratio analysis? Check all that apply. Market data is not sufficiently considered. Seasonal factors can distort data. Window dressing might be in effect.

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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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.Ratio analysis is an important component of evaluating company performance. It can provide great insights into how a company matches up against itself over time and against other players within the industry. However, like many tools and techniques, ratio analysis has a few limitations and weaknesses. Which of the following statements represent a weakness or limitation of ratio analysis? Check all that apply.

Market data is not sufficiently considered.

Seasonal factors can distort data.

Window dressing might be in effect.

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