Explain the importance and purpose of ratio analysis. How are businesses able to utilize the ratio analysis results when making business decisions?

When determining which company to invest your recent lottery winnings: evaluate which category of ratios is more important to your decision and why?

In your initial post address the following:

1. Identify the importance and purpose of ratio analysis.
2. Explain how businesses can use ratio analysis in decision making?
3. Explain which category of ratios is more important in investing your winnings.