Discuss in details limitations of using ratios

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Consider two commercial banks in Bahrain whose stocks are traded in the Bahrain Bourse (Bahrain Stock exchange). Obtain their financial reports for years 2015 and 2016. Compute all the relevant ratios and analyze their liquidity, efficiency in managing assets, debt position and performance. Based on the ratios and your analysis, determine which company had a better financial performance. Also discuss in details the limitations of using ratios to evaluate and compare the two companies (in your case two banks).

Reference no: EM132016184

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