# Ratio Analysis

Ratio Analysis is a tool used by individuals to conduct a quantitative analysis of information in a company's financial statements.

# Ratio Analysis

**Ratio Analysis** is a tool used by individuals to conduct a quantitative analysis of information in a company's financial statements.

## Application of Ratio Analysis

Ratios are calculated from current year numbers and are then compared to previous years, other companies, the industry, or even the economy to judge the performance of the company. Ratio analysis is predominately used by proponents of fundamental analysis.