What do you mean by ratio analysis?

Using financial statements, financial analysts use ratio analysis to gain a deeper understanding of a company's overall equity analysis.

The analysis of different ratios helps stakeholders measure a company's profitability, liquidity, operational efficiency, and solvency. By combining these ratios with other essential financial metrics, you can gain a deeper understanding of the company's financial health.

Analyzing ratios helps in:

• Examining the current performance of your company with past performance
• Avoiding potential financial risks and problems 
• Comparing your organization with other 
• Making stronger and data-driven decisions