Order
 

1(888) 302 2271 1(877) 741 7256

Essay

Ratios are Misleading and Have Many Limitations

Essay specific features

 

Issue:

Business

 

Written by:

Gregory C

 

Date added:

April 12, 2015

 

Level:

University

 

Grade:

 

No of pages / words:

2 / 302

 

Was viewed:

6445 times

 

Rating of current essay:

 
Essay content:

To insure that one is receiving the full picture one would implement a trend analysis of a company’s performance over a number of years. With regard to possible limitations of ratios, there are a number of possible distortions to ratios with regard to how accountants report on such items as effect of inflation (during inflationary times revenue is usually stated in current dollars, where plant and equipment or inventory could have been purchased at lower prices thus profit being more a function of price increases than that of increased performance), or disinflation, timing of recognition of sales as revenue, how the accountants treat inventory write offs, or the presence of extraordinary gains and losses and how these are reported to name a few...
displayed 300 characters

Custom written essay

All essays are written from scratch by professional writers according to your instructions and delivered to your email on time. Prices start from $10.99/page

Order custom paper

Full essays database

You get access to all the essays and can view as many of them as you like for as little as $28.95/month

Buy database access

Order custom writing paper now!

  • Your research paper is written
    by certified writers
  • Your requirements and targets are
    always met
  • You are able to control the progress
    of your writing assignment
  • You get a chance to become an
    excellent student!

Get a price guote

 
 

A financial analyst must take ratios and numerous other tools into play when evaluating the operating performance of a company against those achieved by similar companies in that industry. This can be another sticking point due to the fact that financial analysts might lack objectivity due to were they work, companies that not only provide financial analysis to investors but also underwrite the securities of the firms they are doing the analysis of such as Goldman Sachs doing research and financial analysis on GE while also profiting from investment banking business with GE...
displayed 300 characters

General issues of this essay:
Financial Analysis Financial Analysis of Real & Virtual Companies Financial Analysis of Two Qatari Companies Financial Analysis Financial Analysis Financial analysis of Companies:TCS,WIPRO,Satyam First Investment Inc.: Analysis Of Financial Statements financial analysis financial analysis financial analysis Gsk Plc Financial Analysis Ibm Financial Analysis The Role of Investment Banking in the US Financial System Working for Goldman Sachs without any financial background TNB-financial analysis
 

Related essays:

x
Services