Show the limitations of ratio analysis, Strategic Management

Assignment Help:

Q. Show the Limitations of ratio analysis ?

A ratio on its own is meaningless, accounting ratios must always be interpreted in relation to other information.  Ratios based on historic cost accounts do not give a true picture of trends, because of the effects of inflation and different accounting policies.  Investors' ratios particularly have a disadvantage, because investment means looking into the future and the past may not always be indicative of the future. Comparing the financial statements of similar businesses can also be misleading.


Related Discussions:- Show the limitations of ratio analysis

Show the activity based budgeting, Q. Show the Activity based budgeting? ...

Q. Show the Activity based budgeting? Activity based budgeting (ABB) uses cost  'drivers'  for  different  support  resources consumed e.g. machining, quality control or admini

Financial perspective for not-for-profit organisations, Q. Financial perspe...

Q. Financial perspective for not-for-profit organisations? The primary objective is profit for most organisations, but for an NPO they are non-profit making. Value for money (V

Statistical procedure for management, A highly perishable drug spoils after...

A highly perishable drug spoils after three days.  That is, a fresh unit on day t may be used on day t, day t+1, and day t+2, but must be disposed of at the end of day t+2. Each

The strategies of the functional areas of an organisation, Discuss the ways...

Discuss the ways in which the strategies of the functional areas of an organisation should support the other levels of strategy. In describing how the functional strategies sup

SWOT, #quIf a SWOT analysis reveals that an objective is unattainable, apar...

#quIf a SWOT analysis reveals that an objective is unattainable, apart from changing the objective, what other changes might make the goal attainable? • Discuss the limitations of

EFE Matrix, Prepare an EFE Matrix for our university Islamic international ...

Prepare an EFE Matrix for our university Islamic international Islamabad by identifying and evaluating external opportunities and threats facing higher education in your state ,the

#title ..core competencies , a. Core competencies are the collective ____...

a. Core competencies are the collective __________ in the organization

What are the four types of strategic control, QUESTION 1 The most impor...

QUESTION 1 The most important purpose of strategic control is to help Top Management achieve organizational goals through monitoring and evaluating the strategic management pro

Write Your Message!

Captcha
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