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

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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