How is ratio analysis used and what are some pitfalls


As your text describes, ratio analysis is a common technique in financial analysis. One of your colleagues states that a thorough ratio analysis is all that is needed in considering the financial health of a company. Although you agree that ratio analysis is a helpful guide, there may be some potential pitfalls in ratio analysis.

How is ratio analysis used and what are some pitfalls?

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Finance Basics: How is ratio analysis used and what are some pitfalls
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