Ratio analysis is important in that it allows companies to evaluate their financial condition in terms of liquidity, profitably, and overall efficiency (Bloomenthal, 2020).Examples of 3 categories of ratios are liquidity ratios, solvency ratios, and profitability ratios (Edmonds, Edmonds, Edmonds, Olds, 2020).An example of a ratio that is used in determining liquidity is working capital. An example of a ratio used in determining solvency is the debt-to-assets ratio. And an example of a ratio used in determining profitability is the net margin. Liquidity ratios utilize a company's current assets and liabilities to measure their ability to pay off short term debts. Solvency ratios utilize a company's assets, equity, and earnings to evaluate the company's ability to pay off long term debt and other outstanding financial obligations (Bloomenthal, 2020). Profitability ratios utilize revenues and expenses to determine how well a company can generate profits from its operations. It's important to understand and utilize these ratios in ways that will ensure financial success in business. Understanding ratios will allow companies to overcome failures, make better financial decisions, and perform proper planning to ensure overall success. What are some other examples that may be included?