Analyzing a company using only one financial ratio


Question 1. Why is depreciation included in the statement of cash flows?

Question 2. What are the shortcomings of analyzing a company using only one financial ratio?

Question 3. Why has the statement of cash flows become a more popular tool for financial analysis over the past few years?

Question 4. Why is it important to use both horizontal and vertical analysis in analyzing financial statements?

Question 5. What ratios do mortgage companies use in determining the qualifications of home buyers?

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Accounting Basics: Analyzing a company using only one financial ratio
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