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Financial statement analysis helps drive management toward making better decisions, but only if the information is interpreted correctly. It can be problematic if you use

Financial statement analysis helps drive management toward making better decisions, but only if the information is interpreted correctly. It can be problematic if you use the financial ratios directly without making any adjustments where appropriate. Please propose one possible issue that we need to consider when analyzing financial ratios and explain why. (For example, seasonality and changes in accounting principles.) Be as specific as possible, giving as many examples and interpretations as possible.

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