A colleague has suggested that your company should invest in The End Game Limited and that all you need to do to decide whether it is a good idea or not is to get a copy of their financial statements. They said that the only type of analysis required will be to use ratio analysis and that should provide you with all the answers.

Required

Looking at the information that is used in ratio analysis, coming from the financial statements and the notes, write a report to your colleague highlighting and discussing three limitations of using ratio analysis as your major analysis method.

(Total 8 marks)

(3 marks will be awarded for the style of the business report, the presentation of the content, and the use of Business English)