What is a financial ratio analysis used for?

Financial ratios are relationships determined from a company's financialinformation and used for comparison purposes. Examples include such often referred to measures as return on investment (ROI), return on assets (ROA), and debt-to-equity

comparison,measuring performance,make decision

Financial ratio analysis is used for comparison purpose and to evaluate various aspects of the campanies operating and financial performance such as its effieciency, Liquidity, Profitability and Solvancy.

Financial Ratio Analysis. Financial ratios are mathematical comparisons of financial statement accounts or categories. These relationships between the financial statement accounts help investors, creditors, and internal company management understand how well a business is performing and of areas needing improvement.