64 727
Assignments Done
99,4%
Successfully Done
In September 2018

Answer to Question #53102 in Other Management for Godvictor

Question #53102
Discuss the limitations of financial ratios in using them to evaluate business
Expert's answer
The main limitation is connected with fact that ratios give us understanding of business for current moment of time. They do not show how business behaves.
Some ratios can be calculated and be equal for companies that have absolutely different absolute values.
The appropriate level for each ratio is defined, but still can be different from business to business. Thus businesses can`t be comparable using ratios.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

Submit
Privacy policy Terms and Conditions