Ratio-Analysis.org
About Ratio-Analysis.org
Financial statement analysis should not be limited to the assessment of sources and uses of funds. Another tool used to gauge the financial health of a business is financial ratio analysis. Essentially, a financial ratio is the comparison of different figures which appear on a balance sheet or an income statement. This comparison is usually expressed in terms of a ratio or a percentage. Business managers, owners, or creditors do not look only at the makeup of financial statements, that is, the "cosmetics."
