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to compare,to analyze the financial position of a company.
to check the financial position of the organisation, ability to pay its liabilities, ability to raise fund for investments, ability to pay to its investors.
Financial ratios are useful in assessing the company performance against benchmark industry or competitor. Ratio are not useful unless they are benchmark against like past performance, or another companies profit indicator . Many companies use ratio as Key performance indicator to assess company current performance against targeted.
Ratios are helpful to know about our companies current status in all view
because we need all time target of sales..budget of cash.
