2. Ratio Analysis a. After calculating each ratio you must write at least one paragraph explaining what the answer you calculated means. Look at the trend from year to year. You need to use outside sources to back up your assumptions. These sources should be from scholarly journals, the financial statements, and as a last resort the internet. You must cite these sources correctly using APA. b. Do NOT simply restate the numbers and calculate differences. Make the assumption your readers can understand the data and do math. You want to show WHY things happened. In the above example you could expand on how their current ratio increased in three years because they paid down debt and did not take on new long-term liabilities