the fire !!

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.