Financial Ratios Analysis

Financial ratios analysis involves examining various numerical relationships from a company's financial statements to assess its performance and stability. By comparing key figures—like profits, debts, and revenues—analysts can evaluate factors such as profitability, efficiency, liquidity, and solvency. This analysis helps stakeholders understand how well a business is operating in its model, revealing strengths, weaknesses, and areas for improvement. Essentially, financial ratios provide a quick and insightful overview of a company's health and help inform decisions regarding investment, management, and strategy.