Answer / shreya

A tool used by individuals to conduct a quantitative analysis
of information in a company's financial statements. Ratios are
calculated from current year numbers and are then compared to
previous years, other companies, the industry, or even the
economy to judge the performance of the company. Ratio
analysis is predominately used by proponents of fundamental
analysis.

Answer / thimmappa poojari

One of the most important tool used for financial reports
analysis in which quantities of amounts are converted into
quantitative ratio for meaningful comparisions with past
financial reports. And also to comapre the
performance /status with that of other simliar / different
industry / firms.
Ratio analysis is a base to understand & to take action on
weaknesses or strengths of the particular firm/business and
so it's a trend setter.

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