Why are comparative ratio analyses useful?

Q: How are the ratios useful?

A: Answer: Ratio analysis is allowing a comparison two firm’s annual financial statement using certain…

Q: What is an acceptable current ratio?

A: Definition: Ratio analysis: It is the financial analysis tool for measuring the profitability,…

Q: What limitations do ratio analysis have?

A: Ratio Analysis: It is a technique used in the financial analysis field. Ratio analysis helps to use…

Q: How is the the financial ratio analyses very useful?

A: Ratio analysis is a method of relative measure between two numericals for gaining knowledge about a…

Q: Discuss any two limitations of  Ratio analysis.

A: Limitations of ratio analysis:Ratios are mostly computed based on historical costs as a result;…

Q: advantages and disadvantages of using ratios

A: Accounting ratios are important metrics used to evaluate the financial position of a business…

Q: How the other ratios affects the ROE?

A: Return on equity is used to measure the company’s ability to utilize their assets to generate…

Q: What is one interpretation of a high P/E ratio?

A: Price to earnings ratio (P/E ratio) states the relationship of the earnings with price of that…

Q: What is Ratio Analysis? Briefly explain

A: Ratio Analysis: It is the procedure of analyzing and looking at money related data by determining…

Q: How do you solve ration analysis

A: A financial ratio, also known as an accounting ratio, is the magnitude difference between two…

Q: List and briefly explain the  quantitative and qualitative  factors consider for ratio  analysis

A: Ratio analysis is a quantitative method of observing a company's liquidity, operational efficiency,…

Q: How is the Current Ratio calculated?

A:

Q: What are the advantages and limitations of ratio analysis? Identify three advantage and three…

A: Ratio Analysis is the use of accounting ratios to forecast or review the financial performance of a…

Q: List several potential difficulties with ratio analysis.

A: Ratio analysis is a correlation of details in an organization's financial reports. It is utilized to…

Q: Define comparative ratio analysis

A: Answer: Comparative analysis of the ratio is a method used by companies to judge the financial…

Q: What is common size analysis?

A: Answer: Common size analysis that measures the percentage sums of each element on the financial…

Q: What ratio, profit, target, or margin is the most important?

A: Accounting Accounting refers to the keeping of a systematic record of business transactions…

Q: What is multistage valuation model?

A: The multi-stage dividend discount model is an equity valuation model that expands on the Gordon…

Q: Discuss the advantages and limitations of Ratio Analysis.

A: Ratio analysis is the process of determining and interpreting numerical relationships based on…

Q: Why is Quick Ratio deemed a better measure than the two other measures? Explain:

A: Quick ratio is used for measuring the short term liquidity position of the company and forms a part…

Q: What is meant by partitioning the internal rate of return? Why is this procedure meaningful?

A: Internal rate of return is defined as the annual rate of earnings on an investment and unlike income…

Q: Explain the coefficient of variation?a

A: The coefficient of variation (CV) may be a statistical measure of the scattering of information that…

Q: List several potential problems with ratio analysis.

A: Ratio analysis is a correlation of details in an organization's financial reports. It is utilized to…

Q: Define the Sortino ratio and explain its advantage

A: Ratio analysis is referred to as the quantitative method for gaining an insight with relate to the…

Q: Is a negative Sharpe ratio good or bad?  EXPLAIN

A: What sharpe ratio measure? It measure the excess return earn by portfolio over risk free rate at…

Q: Please I want answer for this according to your understanding and experience. Thanks

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: Give some examples of the market-value ratios?

A: Market value ratios may include various types of ratios which indicate the value of company’s share.…

Q: What is multiple discriminant analysis?

A: Multiple discriminant analysis (MDA) is a statistical method used by many financial planners to…

Q: What is the relationship between the B/C ratio and the PW criterion?

A: The question is based on the concept of benefit to cost ratio analysis and present worth criteria…

Q: List three types of users of ratio analysis. Would the different users emphasize thesame or…

A: Introduction: A ratio is a simple arithmetical expression of the relationship of one number to…

Q: Usually, which outweighs the other in decentralization—advantages or disadvantages?

A:

Q: Why is ratio analysis so significant?

A: Ratio Analysis: This refers to the performance measurement of the business, in order to know the…

Q: What does the current ratio measure?

A: Ratios are the group of metrics which are used to measure the profitability as well as efficiency of…

Q: How is the Quick Ratio calculated?

A: Definition:   Quick ratio: The financial ratio which evaluates the ability of a company to pay off…

Q: main limitations of ratio analysis

A: Ratio analysis is the way to assess the financial status of an entity based on certain accounting…

Q: what are the limitations of the Comparative advantage theory?

A: Solution- Comparative Advantage Theory-          The term comparative advantage is most frequently…

Q: 1. Describe the difference benchmarks that can be used for ratio analysis.

A: Ratio analysis: It is the method of evaluation of the current financial condition of the company…

Q: Explain the limitations of ratio analysis

A: Limitations of ratio analysis:Ratios are mostly computed based on historical costs as a result;…

Q: What is meant by the current ratio?

A: The current ratio is liquidity which measures the ability of the enterprise to pay its short-term…

Q: Could you please discuss the limitations of financial ratio analysis

A: Introduction Ratio analysis may be defined as that type of analysis tools which is used to ascertain…

Q: Why is current ratio used?

A: Current ratio is the measure of liquidity position of the company. It shows the ability of the…

Q: What is the difference between the current ratio and the quick ratio?

A: Ratio analysis is a method of measuring the financial position of the organization with different…

Q: Compare and contrast trend analysis and comparative ratioanalysis

A: The key distinction between analysis and comparative analysis is that analysis may be a procedure in…

Q: What are the potential issues with using the P/E multiple for relative valuation?

A: Relative valuation is referred as the simple method through which the value of company is estimated…