Ratio analysis is a common technique in financial analysis. A colleague states that a thorough ratio analysis is all that is needed in considering the financial health of a company. Although you agree that ratio analysis is a helpful guide, there may be some potential pitfalls in ratio analysis.
Discuss at least 3 potential issues in utilizing ratio analysis that you would share with your colleague.
In addition, calculate a liquidity, profitability, and efficiency ratio from Apple Inc. to demonstrate your observations in a 200 – 300 word explanation, that is supporting your findings.