“Ratios are good tools for analysis but should not be taken mechanically.” Please Discuss.

Ratios are extremely useful tools, but as with other analytical methods . They must be used with caution and judgment, not in an unthinking mechanical manner.  

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Ratios are taken over periods with different basics, so good to use as a tool over a period, but not as a specific tool to define at a certain moment, then you have to look at the market/economy at that time

Obviously, the ratios are the tools to analysis the data and to understand the current and future scenarios. Fully agreed that these should not be taken mechanically, the analyst have to understand its each component in detail and explain in detail and suggest how to improve the present situation.

The management is more interested in pragmatic solutions rather in issues and problems. 

Ratio is a statistical yard stick which is used for measured to relationship between two or more variables. Dependent Variable and Independent Variable.

1.  Benchmark to Industry Leaders' Ratios, Not Industry Averages

2.  Companies' Balance Sheets are Distorted by Inflation

3.  Ratio Analysis Just Gives you Numbers, not Causation Factors.

4.  Different Divisions May Need Comparison to Different Industry Averages

5.  Companies Choose Different Accounting Practices

6.  Companies can use Window Dressing to Manipulate Their Financial Statements

Ratio analysis throws a overall view of positions. But when we analyse financial statements many factors should be considered like Industry type, market scenario, systematic and unsystematic risk involvement, cash flow, business cycle etc.

Ratio analysis does not have any thumb rules e.g For a newly start up business when the ideal debt equity ration should be1:1 at the same time for a old venture2:1 can be considered as good.  

Agree with all answers

thank you

Design for manufactureability (also sometimes known as design for manufacturing or DFM) is the general engineering art of designing products in such a way that they are easy to manufacture. The basic idea exists in almost all engineering disciplines, but of course the details differ widely depending on the manufacturing technology. This design practice not only focuses on the design aspect of a part but also on the producibility. In simple language it means relative ease to manufacture a product, part or assembly. DFM describes the process of designing or engineering a product in order to facilitate the manufacturing process in order to reduce its manufacturing costs. DFM will allow potential problems to be fixed in the design phase which is the least expensive place to address them. The design of the component can have an enormous effect on the cost of manufacturing. Other factors may affect the manufacturability such as the type of raw material, the form of the raw material, dimensional tolerances, and secondary processing such as finishing.

The design stage is very important in product design. Most of the product lifecycle costs are committed at design stageCitation needed. The product design is not just based on good design but it should be possible to produce by manufacturing as well. Often an otherwise good design is difficult or impossible to produce. Typically a design engineer will create a model or design and send it to manufacturing for review and invite feedback. This process is called a design review. If this process is not followed diligently, the product may fail at the manufacturing stage.

If these DFM guidelines are not followed, it will result in iterative design, loss of manufacturing time and overall resulting in longer time to market. Hence many organizations have adopted concept of Design for Manufacturing.

Depending on various types of manufacturing processes there are set guidelines for DFM practices. These DFM guidelines help to precisely define various tolerances, rules and common manufacturing checks related to DFM.

While DFM is applicable to the design process, a similar concept called DFSS (Design for Six Sigma) is also practiced in many organizations.

Financial analysis tools are one of the most efficient ways that can be used for ensuring good profit from your investments. These financial analysis tools are highly helpful in evaluating the market and investing in a way so as to maximize the profit from the investments made. These financial analysis tools are useful for deciphering both internal and external information related to a specific business organization.

Thank you sir for the invitation,

Ratios are not useful unless understood in the context of underlying scenarios. Thoroughly understanding the business background will definitely help using the ratios successfully.