Possible Limitations of Ratio Analysis

This document discusses the possible limitations of ratio analysis, including its reliance on historical financial results and its susceptibility to market conditions such as inflation. It also explores the impact of pressure exerted on senior management by shareholders on the accuracy of financial statements. Additionally, it suggests an action that management can take to mitigate the risk of fraud in financial statements. Finally, it examines the performance of Marks & Spencer as a business based on its annual report and financial statements for 2017.