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Financial ratios may be used to understand a companys financial position, but anyone who works with these ratios ought to be aware of the limitations

Financial ratios may be used to understand a companys financial position, but anyone who works with these ratios ought to be aware of the limitations involved in their use. With your own words and understanding discuss (with relevant example) any 2 (TWO) limitations that may be encountered in computing and interpreting financial ratios.

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