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Business finance Financial Ratios

Business finance Financial Ratios

Why do we use financial ratios? What are the 2 comparisons we can form with ratios?

Looking for a response in about 125 or so words please




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We use financial ratios to assess the relative strength of organizations. Through this, the financial ratios inform us of the liquidity of an organization putting us in a better position to make informed financial decisions. For instance, investors are quite interested in financial ratios of companies so that they may be informed of its profitability or otherwise before investing their money. They do this by employing the idea…………..


174 Words


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