Ratio Analysis

Objectives

• Recognize the purpose of ratio analysis with internal and external users


• Name the limitations of ratio analysis

Discussion Overview

This discussion forum explores various uses and limitations of ratio analysis.

Deliverables

Your participation in the discussion forum including:

• A response to the question presented in the discussion details below


• Responses to at least one other student post

Step 1

Identify a specific ratio and list how it might be used internally. List a limitation for internal users.

Please write in basic English and I will be attaching you with pictures of the book so you could do this discussion. Please follow only the Ratios that isn’t used in the book and nowhere else.