Explain disadvantages to using ratios in financial analysis

Assignment Help Accounting Basics
Reference no: EM132630172

Discussion: Your initial discussion thread is due and you have to respond to your classmates. Your grade will reflect both the quality of your initial post and the depth of your responses.

Ratio Analysis

Using the Ashford University Library as a resource, find two articles that discuss financial ratio analysis. Identify two advantages and two disadvantages to using ratios in financial analysis. Be sure to cite your sources using APA format as outlined in the Ashford Writing Center.

Guided Response: Review at least two of your classmate's posts. Respond to at least two classmates by commenting on how the articles they found were similar or dissimilar from your own. What can you add in regard their advantages and disadvantages?

Reference no: EM132630172

Questions Cloud

Forecast the high temperature today : 1. Daily high temperatures in St. Louis for the last week were as follows: 76, 74, 78, 82, 75, 73, 78 (yesterday).
Determine the new break-even point in units : The fixed costs are $740000 and the variable costs are 60% of the selling price. Determine the new break-even point in units
Find out demand level for spare parts : Based on this data and the multiplicative seasonal model, what will the demand level for spare parts in the spring of year 5?
Draw a decision tree showing the decisions : Draw a decision tree showing the decisions, chance events, and their probabilities, as well as the profitability of outcomes.
Explain disadvantages to using ratios in financial analysis : Using the Ashford University Library as a resource, find two articles that discuss financial ratio analysis. Identify two advantages and two disadvantages.
What is the maximum external price : If cost minimization is the major consideration and the company would prefer to buy the CDs, what is the maximum external price
Determine the range of annual volume : Determine the range of annual volume for which each of the alternatives would be best.
How much money can we save by focusing our business : How much money can we save by focusing our business on these suppliers? How do we select the right suppliers?
Develop a rough estimate for each division cost of capital : Corporations often use different costs of capital for different operating divisions. Using an example, calculate the weighted cost of capital (WACC).

Reviews

Write a Review

Accounting Basics Questions & Answers

  Create the journal entry at the date of purchase

Kingbird Inc. has decided to purchase equipment from Central Michigan Industries on January 2, 2017. Create the journal entry at the date of purchase.

  Bluegrass economic slide worsens and bankruptcy results

From a tax perspective, which alternative would be preferable in the event that Bluegrass's economic slide worsens and bankruptcy results? Explain your answer.

  In desperation, you go to your superior janet

In desperation, you go to your superior Janet Well the chief financial officer of the city, and ask her for guidance. She suggests you not worry about such a petty thing No one reads these reports anyway. What would you do?

  Investment in total income

Mouns Company owns 30% interest in the stock of Darian Corporation. During the year, Darian pays $20,000 in dividends to Mouns, and reports $100,000 in net income. Mouns Company's investment in Darian will increase Mouns' net income by?

  Kirby airlines is a small airline that occasionally carries

kirby airlines is a small airline that occasionally carries overload shipment for the overnight delivery company

  Which of the following isolated events will not change

A firm has $100 of average inventory, operating profit of $500 and sales of $1,500. Its days in inventory is: Which of the following isolated events will NOT change the quick ratio for a manufacturer

  Discuss the differences in classifications of cash flows

Discuss the differences in classifications of cash flows between IFRS and U.S. GAAP. What impacts will these have on U.S. companies?

  Summary of the basic cost accounting concepts

You are the controller for a medium-sized manufacturing company. Include in your report a summary of the basic cost accounting concepts

  Clorox net sales in fiscal 2003 were more than 4 billion

clorox net sales in fiscal 2003 were more than 4 billion and were double the 1997 level and these operations produced

  Sales mix problem chapter cost volume analysiscompute the

sales mix problem chapter cost volume analysis.compute the sales dollars needed to achieve a total contribution margin

  What is the rate of return on investment

Division W of Comer Company has sales of $840,000, cost of goods sold of $500,000, operating expenses of $256,000, andinvested assets of $600,000. What is the rate of return on investment for Division W?

  Adjusting entries are required at the end of the period to

adjusting entries are required at the end of the period to ensure that accrual accounting principles are applied. at

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd