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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. I chose Average payment Period

I have to discuss Average Payment Period. Please write in basic English and please use the pictures of the book from order XXXXXXXXXXPlease follow only the Ratios that is used in the book and nowhere else.


Answered Same Day Apr 21, 2021

Solution

Aarti J answered on Apr 21 2021
149 Votes
100 days of accounts payable period stated, that the company takes around 100 days to pay off its creditors for the goods or the raw materials that the company has purchased from them. 100 days can be considered as a long period, as the company is paying off its accounts payables in average of 100...
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