Analysis report Limitations

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Limitations

  • Working capital is negative so liquidity can not be measure on this base.
  • In cash ratio marketable securities are not given so liquidity can not measure on this ratio.
  • In sales to working capital ratio working capital is negative so decision can not made on this ratio.
  • In time interest earned and fixed charge coverage ratio capitalized interest is not given except 2006 so decision on this ratio will wrong.
  • In debt to tangible net worth ratio intangible assets are not given so decision can not be made on this ratio.
  • In return on total and common equity there is no any dividend so this ratio can not be calculated correctly.
  • In price earning ratio there is no market price is given except 2009 and 2010 so it can not be calculated.
  • In %age of earning retained there is no any dividend so it is limitation.
  • Because dividend is not given so dividend payout and dividend yield ratio can not be calculated.
  • In book value per share preferred stock equity is not given.
  • In diluted earning per common share preferred dividend is not given.
  • There is no dividend so OCF/cash dividend can not be calculated.
  • In multivariate model in x4 market value of equity is not given so this model can not be calculated correctly.

There are some general limitations:

  • Wrong figure may be used.
  • Wrong calculation may be done.


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