Limitations of Ratio Analysis | A-Level, IB & BTEC Business
The limitations of ratio analysis are summarised in this video.
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VIDEO CHAPTERS
0:00 Introduction
0:08 Reminder: What is Ratio Analysis?
0:33 The Main Groups of Ratios
1:37 Be Aware of Limitations of Ratio Analysis
2:06 Why Might Ratio Data Not be Entirely Reliable?
3:13 The Importance of Effective Comparison
4:12 What Ratios Don't Tell You...
5:21 Ratios - Overall
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Key limitations identified here
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