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What Are Some of the Pitfalls Involved in Using Financial

Question 45

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What are some of the pitfalls involved in using financial ratios?
B.Finally, an analyst should understand how a given ratio has changed over time and the reasons for that change.A ratio for a given period may be acceptable, but ignoring changes over time can lead an analyst to overlook important developments.

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It is easy to rely on financial ratios t...

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