Relying exclusively on financial ratios is effective because they provide performance standards and indicators of what has occurred.

Question

Quizplus · Accepted Answer

Relying exclusively on financial ratios is not effective as they only provide a limited view of a company's performance and financial health. Other factors such as industry trends, market conditions, and qualitative analysis are also important to consider. Using a variety of methods and sources to evaluate a company's performance is more effective than relying solely on financial ratios.

Relying Exclusively on Financial Ratios Is Effective Because They Provide