Problem #21 Despite numbers (or quantitative) reports being important, discuss the limitations of ratio analysis. Point out two examples.

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
Problem 1MC: Why are ratios useful? What three groups use ratio analysis and for what reasons?
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Problem #21
Despite numbers (or quantitative) reports being important, discuss the limitations of ratio analysis.
Point out two examples.
Transcribed Image Text:Problem #21 Despite numbers (or quantitative) reports being important, discuss the limitations of ratio analysis. Point out two examples.
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