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Ratio Analysis Objectives Recognize the purpose of ratio analysis with internal and external users Name the limitations of ratio analysis Discussion Overview This discussion forum explores various...

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Ratio Analysis

Objectives

  • Recognize the purpose of ratio analysis with internal and external users
  • Name the limitations of ratio analysis

Discussion Overview

This discussion forum explores various uses and limitations of ratio analysis.

Deliverables

Your participation in the discussion forum including:

  • A response to the question presented in the discussion details below
  • Responses to at least one other student post

Step 1

Post your response.

Identify a specific ratio and list how it might be used internally. List a limitation for internal users.

Please write in basic English and I will be attaching you with pictures of the book so you could do this discussion. Please follow only the Ratios that isn’t used in the book and nowhere else.

Answered Same Day Apr 18, 2021

Solution

Aarti J answered on Apr 19 2021
148 Votes
Ratio Analysis
Ratio analysis is a technique which helps in analysing the financial statements of the company and helps in analysing the performance of the company through different aspects like profitability, solvency, liquidity and efficiency.
One of the ratios that can be used by the company can be operating expense margin. This ratio can be calculated by analysing the total operating expenses as per the...
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