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Chapter 3




               6.4  Limitations of ratio analysis

                    Different variants of certain ratios exist (gearing, ROCE).

                    Results can be distorted by seasonality

                    Creative accounting (e.g. profit smoothing) will impact ratios.


               6.5  Non-financial performance measures

               Non-financial performance measures are becoming increasingly important. These
               might include:

                    instances of environmental spillage


                    employee turnover

                    workplace accidents

                    training expenditure per employee

                    carbon dioxide emissions.













































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