Question: How does inflation distort ratio analysis comparisons for one company over time (trend analysis) and for different companies that are being compared? Are only balance

How does inflation distort ratio analysis comparisons for one company over time (trend analysis) and for different companies that are being compared? Are only balance sheet items or both balance sheet and income statement items affected?

Your response should be a minimum of 2-3 paragraphs and should include your comments/opinion, provide examples, support your perspective. Read all other posts and respond to two (2) other posts

Can someone please answer this effectively and provide input? I am sort of struggling with coming up with a unique answer. Thanks.

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