Advantages & Disadvantages of Ratios in Business. Financial statement analysis is useful in anticipation of future conditions and planning for actions that will improve the firm's future performance.

Ratio analysis is the process by which an accountant converts financial quantities into ratios to facilitate comparison with ratios from previous years and those of competing businesses. According ...

Let’s consider an example using XYZ Corp, a technology company listed on the stock exchange. Alex, an investor, is analyzing whether to invest in XYZ Corp based on its market-to-book ratio. XYZ ...