Do you think evaluating financial statements is a good idea

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Question 1: What is the difference between the two companies on this ratio? What is a plausible explanation as to why they would differ? Is one company clearly different than the other?

Question 2: Are there economic or end-market influences that explain why the ratios differ? What might they be?

Question 3: Over time, is each company's overall financial performance improving, declining, or is something strange going on?

Question 4: Do you think evaluating financial statements is a good idea? What do you regard as some of the shortcomings of financial ratio analysis?

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Reference no: EM133436607

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