What is the response to this statement? Just like with most tools, ratio analysis has benefits and limitations. Please discuss at least one benefit and one limitation of ratio analysis. Ratio analysis is a process that involves calculating and analyzing financial ratios to assess a firm's performance and to identify actions that could improve that firm's performance. There are five groups of ratios that are most commonly used: liquidity, asset management, debt management, profitability, and market value. One benefit of ratio analysis is that it can be used to measure the company's performance, both internally and externally. Internally, current financial data is compared to historical financial data to identify trends and areas that may need improvement. Externally, the ratios are used by investors and creditors to evaluate a company's financial health and performance as it compares to competitors in the same market. A limitation to ratio analysis is that it is based on historical data. Because the ratio analysis is based on historical data, it may not be able to predict future events or be able to consider changes in the business and economic environment