B. Financial health of an organisation is key indicator that has always been of great value both internally as well as outside of an organisation. A company's data carries enormous amount of information, allowing financial analysts not only to derive conclusions on the past and present, but also to try and predict into the future as well. Therefore, financial analysis is best described as the process of using financial data to assess a company's performance and make recommendations about how it can improve going forward. Typically, financial analysis is used to assess the status of an organisation by looking at how stable, solvent, liquid or profitable it is so that a correct monetary value could be further allocate against it. This is generally used internally in an organisation as a tool for monitoring and managing the finances, while external investors tend to use it to understand the overall health of an organization as well as to evaluate financial performance and business value. Moreover, financial ratios or otherwise known as accounting ratios can be further used to provide even more information into how a business performs. What is more, ratios are particularly useful in identifying trends in the business while also providing warning signs when it may be time to make a change. Ratios tend to be particularly useful when results over several periods are compared. Two companies competing in the same industry are being evaluated by a bank that can lend money to only one of them. Summary information from the financial statements of the two companies are as follows: