What factors are frequently ignored in financial analysis? Why?

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 9MC
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What factors are frequently ignored in financial analysis? Why?

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Qualitative factors are the factors that deal with an intangible as well as inexact information that is difficult to collect as well as to measure such information in numerical terms.


Qualitative factors such as the relationship of employer and employee, Management quality, Staff quality, competitive advantage, and so on are ignored.

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