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Discussion: Week 8 – Financial Analysis
“Financial ratios don’t always provide answers, but they can help you ask the right question.”
Why it is important to an analyst to “ask the right question”, not just rely on the financial ratios?
Discussion: Week 8 – Financial Analysis Answer
Financial ratio is a tool used to help investors and readers of financial statements assess the financial wealth and condition of the company. As it is a tool to help in decision making, financial ratio don’t always provide the answer. In fact, it should not be the sole basis for the decision making. Yes, it provides significant information about the potential direction of the business using the historical figures