a financial report is a snapshot in time, and markets or market outlooks may have changed
if you are looking at an M&A situation, financial ratios would be looked at. These ratios give indications of the situation and pricing of the firm, but does not say alot about the underlying reasons of WHY.
Also, who do we compare the ratios with? industry average? would we be interested in buying an average firm?
also, it says very little about the intangible assets within the company, and also things such as corporate culture, morale, level of human capital etc
This post was edited by Simens on Oct 29 2013 05:22pm