Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. ratio analysis is an important tool used by invest

Ratio analysis is an important tool used by investors, creditors, and management when assessing the health...

60.2K

Verified Solution

Question

Finance

Ratio analysis is an important tool used by investors, creditors,and management when assessing the health of a company. However,ratio analysis has some problems and issues. What do you think arethe problems and issues you must be aware of when conducting ratioanalysis? What are the key ratios a creditor would investigate, andwhy?   

Answer & Explanation Solved by verified expert
3.6 Ratings (368 Votes)
Ratio analysis is an important tools used by various stakeholder to assess the financial health of the company It indicates one number in relation with the other But there are also some problems and issues involved with the ratio analysis Ratio analysis involves the number and those numbers are derived from the previous financial statement So predicting the outcome of future event based on the historic data is very hard It takes the data from the financial statement So we need to make sure that the data    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Ratio analysis is an important tool used by investors, creditors,and management when assessing the health of a company. However,ratio analysis has some problems and issues. What do you think arethe problems and issues you must be aware of when conducting ratioanalysis? What are the key ratios a creditor would investigate, andwhy?   

Other questions asked by students

Q

Two objects of masses m and 8m are moving toward each other along the x-axis with...

Physics
Q

1) Which one is not true about overall cost leadership? Select one: 1. Often firms avoid marginal...

General Management
Q

3 In a cylindrical region uniform magnetic field which is perpendicular to the plane of...

Physics
Q

Question 3 Convert the angle 150 to radians Give the exact value and use pi...

Basic Math
Q

Tutorial Exercise Use the power series 1 1 x 1 n 0 1 x Xx...

Calculus
Q

Find an equation of the tangent line to the curve y 9 sin x sin...

Calculus
Q

Find the solution set of the equation.log(5+x) -log(x - 3) = log 5a) b) {5}c)...

Algebra
Q

You are Running a 98-room hotel you sold 500 rooms in the past week. Then...

Accounting
Q

most of this is filled out but i dont know the PPE section and the...

Accounting
Q

At the end of the current year, Accounts Receivable has a balance of $745,000; Allowance...

Accounting
Q

The process of accumulating interest in an investment over time to earn more interest is...

Accounting
Q

please help asap Solve the IVP x=x+21y+sin(t)2y=2x+4etx(0)=2y(0)=6

Accounting