A ratio is one value expressed to another. A financial ratio is one financial value or measurement
Question:
Why or why not do you consider it sound business practice to make financial decisions based solely on the results of calculating financial ratios, for instance, whether to invest in a company or loan money to it?
Is it possible that a "good" financial ratio might be artificially caused by another ratio which is "bad"?
Financial Ratios
The term is enough to curl one's hair, conjuring up those complex problems we encountered in high school math that left many of us babbling and frustrated. But when it comes to investing, that need not be the case. In fact, there are ratios that,...
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Yes Reported values on balance sheets are often different from real values Inflation affects invento...View the full answer
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