Identify a challenge to adams use of ratio analysis

Reference no: EM133542886

Question: Adam conducted ratio analysis on two companies that he was considering for purchase. A software company had a net profit margin of 20%, whereas a grocery retailer had a net profit margin of 3%. Based on their respective profit margins, Adam concluded that the software company was a better buy. Identify a challenge to Adam's use of ratio analysis.

Reference no: EM133542886

Questions Cloud

What do you think when you think of germany-anger-beer-war : It's not always the prettiest picture to some, but it is important to recognize the good that has come out of Germany as well.

Why do you think creatine phosphate is sold in health : Why do you think creatine phosphate is sold in Health Food Stores, such as GNC, and marketed toward body builders? What would be the potential advantage

Develop one competency model with proficiency scales : develop one competency model with proficiency scales that should differentiate between average and superior sales performance. For creating the proficiency

What are five strategies for building rapport : What are five strategies for building rapport and What are three strategies for creating rapport and improving communication with people

Identify a challenge to adams use of ratio analysis : Adam concluded that the software company was a better buy. Identify a challenge to Adam's use of ratio analysis

Educated families of people requiring critical care : Have you encountered and supported/educated families of people requiring critical care?

What are some ways that target differentiates itself : What are some ways that Target differentiates itself in the retail market - How would I explain how Target positions itself?

Discuss the psychopharmacological treatment : Discuss the psychopharmacological treatment for restless leg syndrome. Outline the neurobiological principles.

Fmea-pareto principle and control charts : Which of these approaches (FMEA, Pareto principle, and control charts) is best for measuring outcomes.

User Account

All Pages