How do you project the limitations of financial ratios?

Answer by  chuck333 (84)

When operating a business there are steps you can take to determine your net income. Before undergoing any project you should check your budget to make sure you will be able to purchase all the tools you need. If you factor in your expenses and subtract your operating cost you will be able to determine your financial ratios.

Answer by  hosneymaruf (182)

Limitations of financial ratios are to set of industry average ratios for large company, inflationary situation ( which may effects on the profit of an organization), seasonal factors(It causes the chance of misinterpretation), difficult to generalize about the ratio.