Question: #22040

BUS650 Week 6 Discussion 2 Potential Issues in Ratio Analysis

BUS650 Week6 DQ2 Potential Issues in Ratio Analysis Potential Issues in Ratio Analysis. As your text describes, ratio analysis is a common technique in financial analysis. One of your colleagues states that a thorough ratio analysis is all that is needed in considering the financial health of a company. Although you agree that ratio analysis is a helpful guide, there may be some potential pitfalls in ratio analysis. Discuss at least three potential issues in utilizing ratio analysis that you would share with your colleague. In addition, calculate a liquidity, profitability, and efficiency ratio from your Week Six company to demonstrate your observations. Develop a 200 – 300 word explanation supporting your findings.
Solution: #22077

BUS650 Week 6 Discussion 2 Potential Issues in Ratio Analysis

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