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"Education is the most powerful weapon which you can use to change the world”
– Nelson Mandela

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Finance_Week 8 Paper

Week 8 Paper

Q Assignment Instructions Topic: Discuss the purpose and importance of financial ratios and financial analysis. What are the limitations of financial ratio analysis? If we divided the users of financial ratios, such as short-term lenders, long-term lenders, and stockholders, which ratios would each prefer and why? Provide examples.

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Several business aspects are quantified by financial ratios. It is an essential portion of the analysis of financial statement. Categorization of financial ratios is done on the basis of the business’s financial aspect measured by the ratio. A financial ratio can be regarded as a comparative magnitude of two chosen numerical values acquired from financial statements of an enterprise ("Ratios and Formulas in Customer Financial Analysis", 2018).