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Uses and Limitations of Profitability Ratio Analysis in ...

5th International Conference on Management, Enterprise and Benchmarking June 1-2, 2007 Budapest, Hungary 259 Uses and Limitations of Profitability Ratio Analysis in Managerial Practice ubica Les kov Faculty of Economics, Matej Bel University Tajovsk ho Street 10, 975 90 Bansk Bystrica Slovak Republic E-mail: Abstract: The evaluation of Profitability performance appears an important lesson for our managers. Numerical measures of performance are valuable tools, but their use must be kept in perspective.

Ratio analysis is used by three main groups: (1) managers who employ ratios to help analyze, control, and thus improve the firm`s operations; (2) credit analysts , such as bank loan officers or credit managers, who analyze ratios to help ascertain

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  Analysis, Ratios, Profitability, Limitations, Ratio analysis, And limitations of profitability ratio analysis

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