Financial Ratio Analysis

Financial ratio analysis involves using specific calculations to evaluate a company's financial health and performance. By comparing different financial figures from a company's reports, such as profits, assets, liabilities, and sales, these ratios help investors, managers, and analysts understand aspects like profitability, efficiency, liquidity, and debt levels. This analysis provides insights into how well the company is doing, its strengths, and potential risks, supporting better decision-making. It’s like taking a snapshot of a company's financial condition to assess its stability and growth prospects efficiently and effectively.