Which of the following statements would most likely be considered false?
A) Analysts can utilize individual ratios on their own.
B) Other dimensions of the company must be looked at when analyzing ratios.
C) A company's historical ratios, or the trend in its ratios, adds context when analyzing ratios.
D) Ratios of comparable companies or industry average ratios give context to a company's ratios.

Question

Quizplus · Accepted Answer

Analysts typically do not rely on individual ratios in isolation because doing so can lead to misleading conclusions. Instead, they consider a variety of ratios and other financial metrics to gain a comprehensive understanding of a company's financial health.

Which of the Following Statements Would Most Likely Be Considered