Discuss at least three potential issues in utilizing ratio analysis that you would share with your colleague.

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Discuss at least three potential issues in utilizing ratio analysis that you would share with your colleague.

Potential Issues in Ratio AnalysisAs your text describes ratio analysis is a common technique in financial analysis. One of your colleagues states that a thorough ratio analysis is all that is needed in considering the financial health of a company. Although you agree that ratio analysis is a helpful guide there may be some potential pitfalls in ratio analysis.Discuss at least three potential issues in utilizing ratio analysis that you would share with your colleague. In addition calculate a liquidity profitability and efficiency ratio from your Week Six company to demonstrate your observations.

 

 
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