Potential Issues in Ratio Analysis.As your text describes, ratio analysis is a common technique in financial analysis. One of your colleagues states that a thorough ratio analysis is all that is needed in considering the financial health of a company. Although you agree that ratio analysis is a helpful guide, there may be some potential pitfalls in ratio analysis.Discuss at least three potential issues in utilizing ratio analysis that you would share with your colleague. In addition, calculate a liquidity, profitability, and efficiency ratio from your Week Six company to demonstrate your observations.Develop a 200 – 300 word explanation supporting your findings.———————Required ResourcesTextByrd, J., Hickman, K., & McPherson, M. (2013). Managerial Finance [Electronic version]. Retrieved from https://content.ashford.edu/• Chapter 11: Financial Analysis – Evaluation of Corporate PerformanceWebsiteNetwork Status – MSN Money (Links to an external site.). (n.d.). Retrieved from http://investing.money.msn.com/investments/key-ratiosAccessibility Statement does not exist.Privacy Policy (Links to an external site.)
