Asked by Nyasia Green on Apr 25, 2024
Verified
Most financial ratios can only be calculated in one way.
Financial Ratios
Quantitative measures derived from financial statement analysis used by investors and analysts to assess a company's financial health, performance, and viability.
- Comprehend the purposes of financial analysis tools and the impediments of financial ratios.
Verified Answer
GT
gretty tirado8 days ago
Final Answer :
False
Explanation :
Some financial ratios can be calculated in different ways, depending on the formula used and the specific data being analyzed. For example, the return on equity ratio can be calculated using either net income or operating income as the numerator. Additionally, some analysts may prefer to use average inventory or ending inventory when calculating inventory turnover ratios.
Learning Objectives
- Comprehend the purposes of financial analysis tools and the impediments of financial ratios.
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