BARSHA DARLAMI PALPA !!

LIMITATION OF RATIO ANALYSIS ==>
1:RATIOS ARE NOT OFFENTLY USED IN LARGE FIRMS BECAUSE COMPARATIVE RARTIOS ARE NOT MEANING FUL.

2:THE USE OF INDUSTRY AVERAGES MAY NOT PROVIDE CHALLENGING TARGET FOR HIGH LEVEL PERFORMANCE.





3:RATIOS MAY BE DOSTORTED BY SEASONAL FACTORS.

4:MANY RATIOS CAN BE INTERPRATED IN DIFFERENT WAYS,AND WHETHER A PARTICULAR RATIOS IS GOOD ,OR BAD SHOULD BE BASED UPON A
COMPLETE FINANCIAL ANALUSIS RATHER THAH LEVEL OF A SINGLE RATIO AT A SINGLE POINT OF TIME.