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1. Ratio analysis Aa Aa A company reports accounting data in its financial statements. This data is used for financial analyses that provide insights into

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1. Ratio analysis Aa Aa A company reports accounting data in its financial statements. This data is used for financial analyses that provide insights into a company's strengths, weaknesses, performance in specific areas, and trends in performance. These analyses are often used to compare a company's performance to that of its competitors, or to its past or expected future performance. Such insight helps managers and analysts improve their decision making There are several groups of ratios most decision makers and analysts use to examine different aspects of a company's performance. Based on the descriptions of ratios listed, identify the relevant category of ratios .Ratios that help determine whether a company can access its cash and pay its short-term obligations are called ratios Ratios that help determine the efficiency with which a company manages its day-to-day tasks and assets are called ratios Ratios that help assess a company's ability to service the interest and repayment obligations on its long-term debt and the degree to which it uses borrowed versus invested financial capital are called ratios ratios help measure a company's ability to generate income and profits based on its invested capital ratios examine the market value of a company's share price, its profits and cash dividends, and the book value of the firm's assets and relate them to other data items to determine how the firm is perceived in the stock market. Ratio analysis is an important component of evaluating company performance. It can provide great insights into how a company matches up against itself over time and against other players within the industry Which of the following statements represent a weakness or limitation of ratio analysis? check all that apply Seasonal factors can distort data window dressing might be in effect. Market data is not sufficiently considered However, like many tools and techniques, ratio analysis has a few limitations and weaknesses

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