Question: Financial Ratio Analysis: Research and discuss some of the concerns or cautions that need to be considered wh

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Question: Financial Ratio Analysis: Research and discuss some of the concerns or cautions that need to be considered wh

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Question:
Financial Ratio Analysis: Research and discuss some of the
concerns or cautions that need to be considered when conducting
ratio analysis. You should research and include a minimum of three
concerns or cautions in your discussion response.
(Hints. how we solve it
Hint 1. Financial ratios are numbers taken under various
accounts inclusion. They are not a one way description evaluation
of the business. In order to have a thorough overview we need to
get various topics and meanings financial ratios, for example .
need to get profitability ratios, viability ratios, leverage,
equity ratios, etc, so as to having a conclusive overview.
key hint: do not stand only one financial ratio to get the
evaluation of the firm
Hint 2. It is not a proper and productive idea to compare
companies from different sectors of the industry, with a common
analysis. In other words, how can compare a firm on F&B
sector with a firm on pharmaceuticals? On the other hand, we
may have comparisons for firms in different sectors of economic
activity, which is fine)
# Please provide references sites also.
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