How to say thank you regarding Ratio analysis is a highly effective method used by companies to examine financial statements in-depth. This powerful tool enables businesses to gain a clear understanding of their financial performance and standing. It also allows them to compare their metrics with those of competitors and track progress over time. Examples of ratio analysis tools include the current ratio, inventory turnover ratio, and gross profit margin ratio. When paired with other metrics and data, these ratios provide a comprehensive view of a company's financial health.