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One problem with ratio analysis is that relationships can be manipulated.For example, if our current ratio is greater than 1.5, then borrowing on a short-term basis and using the funds to build up our cash account would cause the current ratio to increase.
Borrowing Costs
Expenses incurred by an entity for borrowing funds, including interest, arrangement fees, and other related costs.
Future
A standardized financial contract obligating the buyer to purchase, and the seller to sell, a specific asset at a predetermined future date and price.
Transactions Exposure
The risk that a company's financial performance or position may be affected by fluctuations in exchange rates impacting transactions in foreign currencies.
Financial Risk
A potential for financial loss inherent in an investment or business operation.
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