Business Finance Homework Help
Business Finance Homework Help. I need to understand more about finalcial ratios
Lack of comparability between companies is one of the problems associated with using financial ratios. Financial ratios are a useful tool to track changes in business over time. However, ratios do a poor job at comparing one company with another, although they are often used that way. A company’s choice of accounting policies used in its financial statements will impact its ratios. The ratios will not be comparable because the valuations are not comparable.
Business Finance Homework Help