My thoughts... Any suggestions....

Ratios are used by both existing and prospective creditors of the firm as well as investors. A creditor is concerned with the ability of an existing or prospective borrower to make interest and principal payments on borrowed funds. The credit analyst uses the historical record of the company, as presented in the financial statements, to predict the potential of the firm to satisfy future demands for cash, including debt service. The investment analyst also uses historical financial statement data to forecast the future. In the case of the investor, the ultimate objective is to determine whether the investment is sound.