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Statement A company exhibiting a high liquidity ratio is likely to have enough resourcer to pay off its short-term obligations. Asset management or activity ratios
Statement A company exhibiting a high liquidity ratio is likely to have enough resourcer to pay off its short-term obligations. Asset management or activity ratios provide insights into management's efficiency in using a firm's working capital and fong-term assets. Debt or financial leverage ratios help analysts determine whether a company has sufficient cash to repay its short-term debt obligations. One possible explanation for an increase in a firm's profitability ratios over a certain time span is that the company's income has: increased. Market value or market based ratios help analysts figure out what investors and the markets think about the firm's growth prospects or current and future operational performance. Hatio analysis is an important component of evaluating company performance, it can provide oreat insights into how a company matches up against itself over time and against other playen within the industry. However, like many tools and techniques, ratio analysis has a few limitations and weaknesses. Which of the following statements represent a weakness or limitation of ratio analysis? Check all that apply. Window dressing might be in effect. Seasonal factors can distort data. Market dota is not sudficiently considered
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