3-1 CHAPTER 3 Analysis of Financial Statements ■ Ratio analysis ■ Du Pont systen Effects of improving ratios Limitations of ratio analysis ■ Qualitative factors Copy right C 2002 Harcourt, Inc All rights reserved3 - 1 Copyright © 2002 Harcourt, Inc. All rights reserved. ◼Ratio analysis ◼Du Pont system ◼Effects of improving ratios ◼Limitations of ratio analysis ◼Qualitative factors CHAPTER 3 Analysis of Financial Statements