What i the Limitations of Ration Analysis?

Answer Posted / rohini kumari

Ratio analysis just reveals the company performance against
set benchmark of company itself or that of industry.The
sales, profit and expenses figures differ from company to
company within same industry which cannot be reflected by
ratio analysis. This ratio couldn't discriminate the
intercompany's performance meticulously unless the figures
are same.

Is This Answer Correct ?    1 Yes 0 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

We are a education institute based in chennai.if i purchase a product in chennai and i transfer it to our branch which is in bangalore. we don't have tin nos,Sales tax nos, cst nos. We have only service tax nos. what is the procedure.

1378


i have completed my MBA with finace background. am intrested to learn oracle finace.can you suggest me which are good instittues in hyderabad.at area wise.

1719


with out college degree con't we dc accounting job?

1588


Expand MNS

1688


what is the difference between speculation & investment?

1728






company's total overhead expense is containing which are the expenses? Definition of overhead expense.

1515


Why in a cash book receipts are debited while the same if received in our books recepits are credited. Why does cash book have a rule to debit receipts and credit payments. For example if am paying the cash that i owe the company or firm i debit in my books(cash) on the debit side and should credit in the cash book but i cant do that cash book take receipts on the debit side as per the general . please clarify many thanx in advance

2121


what are the payroll procedures?

1761


What is wealth maximisation

1622


Assets are held in the Business for the purpose of____________________

1764


EXPAND_________SCM

1786


Example for extra ordinary expenditure?

2232


how to entry in tally for other person check received

1430


Can i make invoice when my client apply for TIN Number ?

1653


Mention some of the major contributions made by you in your present and previous jobs

5615