Assess limitations of the exclusive use of ratio analysis for evaluating financial performance.

Words: 220
Pages: 1
Subject: Uncategorized

As a reminder, you will continue to act as a consultant hired by the operations director of the Barry Computer Company to do a financial analysis and comparison to the industry. You will conduct a financial ratio analysis to gain a good understanding of the companys financial performance and will then write up an evaluation of the organizations financial health, as well as your recommendations for how specific ratios can be improved within the next 35 years.

1. For each ratio that negatively falls outside the industry standards, develop at least one appropriate recommendation for the Barry Computer Company to improve financial performance over time (over the next 35 years to meet industry standards).
2. Assess limitations of the exclusive use of ratio analysis for evaluating financial performance. In your assessment, describe any qualitative factors that could also complement the ratio analysis and play an important role in improving financial performance.

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