Financial Ratios

Financial ratios are made just to provide a gist of the numbers provided by an organization. The problem stems from the narrow straight line definition of a ratio which is an analysis of what the market is at that time. It may not directly show the investment in an organization nor will it develop any understanding of loss or gain in the organization. Moreover, it should just be a first step in looking at the numbers and not directly dictate any sort of analysis of the organization.

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