Purpose and Importance of Financial Ratios and Financial Analysis
1) Discuss the purpose and importance of financial ratios and financial analysis.
2) What are the limitations of financial ratio analysis? If we divided the users of financial ratios, such as short-term lenders, long-term lenders, and stockholders, which ratios would each prefer and why? Provide examples.
4-5 Pages without the reference page and must include at least five external scholarly journal references
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A financial ratio is a rational interrelationship between two selected values of a firm’s financial statement. One to calculate the ratio has to access the financial status of the firm as most of the statistics are derived from the status. This can be used to show the growth of the company by estimating the financial state…
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