
The primary purpose of ratio analysis is to identify a company's strengths and weaknesses, and to compare its performance to that of its peers and industry benchmarks.

Liquidity ratios are a type of financial ratio that are used to measure a company's ability to meet its short-term financial obligations. These ratios are used to evaluate a company's ability to pay off its debts as they come due and its overall short-term financial health.

Financial statement analysis is the process of evaluating a company's financial statements in order to assess its financial health and performance. It is a must-have tool in investors' toolboxes which helps them to understand the financial strength and weaknesses of a company, and to make informed decisions.