Question.4401 - Ch. 6 Written Assignment 2 (Video Activity)DetailsWatch the video "Ratio Analysis—Limitations of Ratios" [6 mins 7sec] and answer the following two questions:(Source: tutor2u. (2016, May 26). Ratio Analysis - Limitations of ratios [Video]. YouTube. https://www.youtube.com/watch?v=UuahUYKvV1k)In the video, Jim walks through several key limitations in the areas of reliability, comparability, relying on only one data source, and using information based in the past. Which limitation do you feel is the most worrisome? What might you do to compensate for the limitation you identified?Outside of the four key areas of limitations, Jim also explores a number of key elements that ratios aren’t able to convey. What characteristics of a firm would you most want to know about if you were to invest that you would not be able to glean from ratios? How would you go about gathering that information if you cannot get it through financial statements and ratio analysis?
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In xxx video xxx walks xxxxxxx several xxx limitations xx the xxxxx of xxxxxxxxxxx comparability xxxxxxx on xxxx one xxxx source xxx using xxxxxxxxxxx based xx the xxxx Which xxxxxxxxxx do xxx feel xx the xxxx worrisome xxxx might xxx do xx compensate xxx the xxxxxxxxxx you xxxxxxxxxx In xx opinion xxx of xxx most xxxxxxxxx limitations xx financial xxxxx analysis xx its xxxxxxxxxx on xxxxxxxxxx data xxxx data xxxxxx predict xxx future xxxxxxxxxxx of x company xx compensate xxx this xxxxxxxx it xxxxxxxxx other xxxxxxx we xxxxxx look xxx industry xxxxxx economic xxxxxxxxx and xxx company's xxxxxx plans xx get x more xxxxxxxxxxxxx picture xx can xxxx analyze xxxxxx in xxx ratios xxxx several xxxxx to xxx if xxxxxxx a xxxxxxxxxx improvement xx decline xxxxxxx of xxx four xxx areas xx limitations xxx also xxxxxxxx a xxxxxx of xxx elements xxxx ratios xxxx t xxxx to xxxxxx What xxxxxxxxxxxxxxx of x firm xxxxx you xxxx want xx know xxxxx if xxx were xx invest xxxx you xxxxx not xx able xx glean xxxx ratios xxx would xxx go xxxxx gathering xxxx information xx you xxxxxx get xx through xxxxxxxxx statements xxx ratio xxxxxxxx Although xxxxxx do xxx reveal x company's xxxxxxxxxxx edge xx ethical xxxxxxxxx directly xxxxxxxxx can xxxx that xxxxxxxxxxx from xxx following xxxxxxx Industry xxxxxxx and xxxxxxx research xxxxxxxx firms xxx industry xxxxxxxx often xxxxxx a xxxxxxxxx competitive xxxxxxxxx based xx factors xxxx market xxxxx brand xxxxxxxx and xxxxxxx differentiation xxxxx reports xxxxx also xxxxx on xxx company's xxxxxxxxxxxxx social xxx governance xxx practices xxxxxxxxx insights xxxx its xxxxxxx reputation xxxxxxx news xxx press xxxxxxxx Investor xxx look xxx announcements xxxxx new xxxxxxx launches xxxxxx expansions xx strategic xxxxxxxxxxxx which xxx indicate x strong xxxxxxxxxxx position xxxxx releases xxxxxxx to xxxxxx or xxxxxxxxxxx for xxxxxxx practices xxx also xx a xxxxxxxx sign xxxxxxxx conferences xxx presentations xxxxxxxxx industry xxxxxx or xxxxxxxxx to xxxxxxx presentations xxx provide xxxxxxxx insights xxxx management's xxxxxx strategy xxx approach xx competition xxx ethical xxxxxxxxxxxxxx Customer xxxxxxx and xxxx articles xxxxxxx on xxxxxxxx platforms xxx articles xxxx reputable xxxxxxx can xxxxxx customer xxxxxxxxx towards x company's xxxxxxxx services xxx business xxxxxxxxx Previous xxxxxxxxxxxxxxxxxx ModuleNextMore Articles From FIN 320 91 - Principles of Finance
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