Picture of the author
Study Locus

Answered: Week 2 | FIN 534 – Financial Management | Strayer University

 
Determine why it is sometimes misleading to compare a company’s financial ratios with those of other firms that operate within the same industry. Support your response with an example from your research.

Response:

 
Comparing financial ratios of companies within the same industry may be misleading because some companies may have investments in other industries that could distort the comparison. An example of this would be comparing Facebook and Twitter’s financial ratios.
Different companies use different accounting techniques when preparing their financial statements. Companies use different accounting methods when computing their financial ratios. One company may be using First in First out method (FIFO) to value its inventory while another company may be using Last in First out method (LIFO) (Persons, 2011). The company using FIFO method will have a higher value of inventory compared to the company that uses LIFO method.Therefore when financial ratios are compared, their results will differ thus misleading information.Inflation also affects the financial ratio analysis. Inflation may affect one country and not another country (Barton, & Court, 2012). Those firms located in a country facing inflation will have different financial ratios compared to those not affected. Inflation affects a company’s balance sheet. Therefore comparing these ratios will be misleading because one firm is affected by inflation and another one is not 

Get unique answers on this homework or any other assignment. order here

Secure payment powered by PayPal
Type of Paper
Academic Level
Deadline (days)
Pages
0
0
Approximate Price $0 -0 words

Our writing services are affordable

High School
From$10page
College
From$13page
University
From$14page
We understand how long and what it takes to complete a research paper. Our expert team is always ready to help you, take notes,write, format, edit and do your citations just right on any topic of your reasearch.

I’ve added an example of how it should look like when completed. I also added the actual review form two reviewers. all the data is collected, the questions below will need to be answered. PLEASE LOOK AT THE EXAMPLE THAT I ATTACHED AND LOOK/READ OVER THE ACTUAL REVIEW.    1)The Test- cost, time to take […]

The Heinlein and Krampf Brokerage firm has just been instructed by one of its clients to invest $250,000 for her, money obtained recently through the sale of land holdings in Ohio. The client has a good deal of trust in the investment house, but she also has her own ideas about the distribution of the […]

ASSIGNMENT DETAILS Considerations in Global Expansion In Unit 1, you have formed a team and started the process of growing your simulation company. Your company will be introducing a new line of carbon fiber bicycles into selected markets in North America (NORAM), Latin America (LATAM), Europe, the Middle East and Africa (Europe-MEA), and Asia Pacific […]

Find US AolCustomer Service Number I8O8.7O7.5494 | Email Support Online Microsoft Aolcustomer service Number I8O8.7O7.5494 Aolhas become one of the most widely used applications in the MS Office package. Sending, receiving, and managing email is important, but there are others. Use manager features, calendars and sample directories. Problems are inevitable with many software tools. Depending […]

 Response Comments – After posting your initial response to the question, begin making comments to your peers. A minimum of two comments made on two different days must be posted in the discussion for a passing grade.  The comments must be early enough before the end of the week to allow for replies. 

Find USA AolCustomer Service Number I8O8.7O7.5494 | Email Support Online Microsoft Aolcustomer service Number I8O8.7O7.5494 Aolhas become one of the most widely used applications in the MS Office package. Sending, receiving, and managing email is important, but there are others. Use manager features, calendars and sample directories. Problems are inevitable with many software tools. Depending […]

1) Review two articles; one is given and another related articles you have to get from the library or online.  a. Summarized each with a minimum of 3 paragraphs each  b. One paragraph of your thoughts for these two articles  c. One paragraph of your comparisons for these two articles [For a total for at […]

How To Active AolCustomer Service Number I8O8.7O7.5494 | Email Support Online Microsoft Aolcustomer service Number I8O8.7O7.5494 Aolhas become one of the most widely used applications in the MS Office package. Sending, receiving, and managing email is important, but there are others. Use manager features, calendars and sample directories. Problems are inevitable with many software tools. […]

How To Active Aol Customer Support Number I8O8.7O7.5494 | Email Support Online Microsoft Aolcustomer service Number I8O8.7O7.5494 Aolhas become one of the most widely used applications in the MS Office package. Sending, receiving, and managing email is important, but there are others. Use manager features, calendars and sample directories. Problems are inevitable with many software […]

Require work done in 3 Pages 750 Words. This unit describes the skills and knowledge required to coordinate and review the promotion of an organisation’s products and services.  It applies to individuals with a broad knowledge of the promotion of products and services specific to an organisation. They may have responsibility to provide guidance or […]

How To Active Aol Customer Service Number I8O8.7O7.5494 | Email Support Online Microsoft Aolcustomer service Number I8O8.7O7.5494 Aolhas become one of the most widely used applications in the MS Office package. Sending, receiving, and managing email is important, but there are others. Use manager features, calendars and sample directories. Problems are inevitable with many software […]

  Add your progress to your Business Simulation Performance Tracking and Review Excel Workbook. Then, complete the Week 6,week 8 Performance Review as if you are filling out your performance review as an employee at ACME Corporation. Answer the following performance review questions in 2 paragraphs each: Please refer salary worksheet, week 4 in excel […]