problem with ratio analysis is that relationships can be manipulated For example, if our current ratio is greater than 1.5, then borrowing on a short-term basis and using the funds to build up our cash account would cause the current ratio to increase.

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The Answer of problem with ratio analysis is that relationships can be manipulated For example, if our current ratio is greater than 1.5, then borrowing on a short-term basis and using the funds to build up our cash account would cause the current ratio to increase.

Problem with Ratio Analysis Is That Relationships Can Be Manipulated