Ratio analysis is an important component of evaluating company performance. It can provide great insights...
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Accounting
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. Seasonal factors can distort data. Market data is not sufficiently considered. Window dressing might be in effect.
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.
Seasonal factors can distort data.
Market data is not sufficiently considered.
Window dressing might be in effect.
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