Financial Ratios

Importance of Financial Ratios.

Question:

Why are financial ratios important?  How do you analyse with financial ratios?

 

Word Count

10

Format

MLA

Answer Preview

According to Gibson (2012), financial ratios are a technique used in analysing financial performance. It is important for business owners to understand how the ratios operate.

There are numerous financial ratios that fall into the following categories:…