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Ratio Analysis of Sprint Corporation

Ratio Analysis of Sprint Corporation

Three potential issues in utilizing ratio analysis

In spite of handiness, financial ratio analysis has a few detriments. Following are the main potential issues that may took place in utilizing ratio analysis.

Ratio Comparison of companies belonging to different industries might be deceptive or misleading, because of the difference in their market structure and regulatory environment.

Organizations usually follow certain kinds of accounting policies and assumptions, these policies are adopted in order to make certain kind of adjustments in the financials of the company. Ratio analysis is simply a measurement tool that does not ...