Discussion
Ratio analysis is an important tool used by investors, creditors, and management when assessing the health of a company. However, ratio analysis has some problems and issues. What do you think are the problems and issues you must be aware of when conducting ratio analysis? What are the key ratios a creditor would investigate, and why?
These are open discussion topics. Do Not think of these topics as questions you must answer. The forum is meant for you to express your learning, what questions and conclusions you have.
Do not go to some websites and copy and paste. You must write in your own words and must demonstrate good knowledge of the discussion concepts. Use your learning this week to apply your analytical skills in order to further your learning. You must not rely entirely on the references. Most of the grade will come from your own thoughts, knowledge, and analysis of the discussion topic.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.