Financial ratio analysis is a technique used by businesses and investors to evaluate a company's financial performance. It involves comparing various financial ratios, such as liquidity ratios, profitability ratios, and solvency ratios, to industry averages and past performance. By analyzing these ratios, investors can determine a company's financial health and make informed decisions about investing in the company. Financial ratio analysis can also help companies identify areas where they need to improve their financial performance and take corrective actions to address those areas. You can use this template if you want to explain this idea to your audience.