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What i the Limitations of Ration Analysis?
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Answer / raghavendra
it campare the relation ship between two firms and past and
present performance
| Is This Answer Correct ? | 2 Yes | 1 No |
Answer / 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 |
Answer / kiran
Ratio Analysis has following Limitions :
1) Lack of understanding of basic principles.
2) Window Dressing
3) Different accounting policies of different companies.
4) Interpritation of results.
| Is This Answer Correct ? | 0 Yes | 0 No |
cash book ruals
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