problem with ratio analysis is that relationships can be manipulated For example, we know that if our current ratio is less than 1.0, then using some of our cash to pay off some of our current liabilities would cause the current ratio to increase and thus make the firm look stronger.

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The Answer of problem with ratio analysis is that relationships can be manipulated For example, we know that if our current ratio is less than 1.0, then using some of our cash to pay off some of our current liabilities would cause the current ratio to increase and thus make the firm look stronger.

Problem with Ratio Analysis Is That Relationships Can Be Manipulated