Discussion Post: Financial Ratios
Consider the articles by Andrijasevic and Pasic (2014) and Mankin and Jewell (2014) assigned in this unit. Discuss the following questions on financial analysis. In addition, discuss why it is important to ask and answer these questions. Give a real world example to enhance the discussion.
• Why does the significance of financial ratios change according to industry or business practices?
• Since ratios are often refined by analysts in their search for deeper insights, to what extent can ratio analysis be standardized?
• How can financial ratios best be interpreted?
The response must include a reference list. Using one-inch margins, double-space, Times New Roman 12 pnt font and APA style of writing and citations.
Reference
• Andrijasevic and Pasic's 2014 article, "A Blueprint of Ratio Analysis as Information Basis of Corporate Financial Management [PDF]," in Problems of Management in the 21st Century, volume 9, issue 2, pages 117-124.
• Mankin and Jewell's 2014 article, "A Sorry State of Affairs: The Problems With Financial Ratio Education," in Academy of Educational Leadership Journal, volume 18, issue 4, pages 195-219.