What are the benefits and challenges of using ratio analysis


Problem

What are the benefits and challenges of using Ratio Analysis method when forecasting? Would you, anyone or myself prefer to use the DuPont method? Would using the two methods to illustrate the company's financial position provide a more elaborate picture of a company's financial health? I'd appreciate it if CH used their own words for better comprehension. If you found a source other than your own words, please cite it so I can look it up.

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Corporate Finance: What are the benefits and challenges of using ratio analysis
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