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. I chose Average payment Period

I have to discuss Average Payment Period. Please write in basic English and please use the pictures of the book from order 39149. Please follow only the Ratios that is used in the book and nowhere else.