Problem 1: Financial reporting and analysis - Please respond the statement
Financial ratios are useful tool that can be used by those who review a company's financial statements. They allow investors and outsides to compare the company's financial performance to not only historical data but also to its competitors. While the financial ratios are a great tool and have good advantages they also have some drawbacks that must be considered.
Problem 2: Financial reporting and analysis:
Please respond the below statement:
200 words and reference:
For our forum assignment this week, we were asked to discuss the advantages as well as the limitations of financial ratios. Financial ratios based on a company's financial statements can be very useful tools for analysts. Such ratios help them compare the company's performance from one period to another or to other businesses within the same industry. However, there are several limitations that analysts need to be aware of so that they do not draw the wrong conclusions from the results.
200 words and reference
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