What are the uses and limitations of using ratio analysis?

Asked on 28.10.2018 in All Questions.
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Limitations of using ratio analysis: The information is historical, and it is too late to do anything about it Comparisons are difficult – different conditions apply in different years, and no two companies are the same Ratio analysis only covers financial information. It does not take into account any other factors such as the quality of staff or the location of the business. These may have a big influence on the performance of a business...
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