Write down the limitations of ratio analysis as tool for financial statement analysis.

Following are the financial statement of Progressive Company Ltd. :

Progressive Company Ltd.
Balance Sheet
As on 31 December, 2022

Additional Information :
(i) Out of total sales for the year, Tk. 2,80,000 was in cash and Tk. 11,20,000 was on credit.
(ii) Cost of goods sold was Tk. 8,40,000.
(iii) Interest paid on long term debt Tk. 40,000.
(iv) Profit before tax and after tax were Tk. 2,80,000 and Tk. 1,40,000 respectively.

Requirement: Calculate the following ratios :
(1) Acid Test Ratio
(2) Accounts Receivable Turnover
(3) Inventory Turnover
(4) Long Term Debt to Total Capital
(5) Gross Profit Margin
(6) Net Profit Margin
(7) Return on Equity Capital
(8) Interest Coverage Ratio.