2 Discussion Questions on Ratio Analysis and Applying Ratios to a Business

Question 1
Using the University Library as a resource, find two scholarly articles that discuss financial ratio analysis. Identify two advantages and two disadvantages to using ratios in financial analysis. Be sure to cite your sources using APA format. 250 words.
Question 2
Review the following Evaluating Business Performance: Small Business Case Studies video:

The video focuses on profitability, liquidity, efficiency, and stability of business. Given what you have learned about ratio analysis, choose one of the businesses from the video (Rose Chong Costumes, Anro’s Floor Maintenance, or John Osborne’s Gym and Squash Center) and identify two ratios that would be helpful for the owner of the business to monitor. Be sure to explain what the ratio would tell the owner, and how it can be improved for the business. Be sure to cite your sources using APA format.