Which of the following is not a limitation of ratio analysis?

The choice indicating that there is an inadequate number of ratios available is not a limitation of ratio analysis. In fact, there is a vast array of financial ratios that analysts can use to evaluate a company's financial performance and position. These ratios can include measures of profitability, liquidity, efficiency, and solvency, among others. The variety of ratios available allows for comprehensive and multifaceted analyses of financial health. This abundance enables analysts and stakeholders to gain insights from different perspectives, which is one of the strengths of ratio analysis.

The other options highlight genuine limitations of ratio analysis. Ratios may not accurately capture economic realities, which means external factors influencing a company's performance could lead to conclusions that do not reflect the true state of affairs. Industry differences can also obscure comparisons; a ratio that looks good in one sector might be inadequate in another due to differing norms and financial structures. Lastly, ratios can be misleading if not considered in the larger context, such as historical performance or in comparison with industry peers. Thus, while ratio analysis can be a powerful tool, it also comes with constraints that users must be aware of.