How to find Company Information
"Financial ratios illustrate relationships between different aspects of a business's operations. They involve the comparison of elements from a balance sheet or income statement, and are crafted with particular points of focus in mind. Financial ratios can provide business owners and managers with a valuable tool to measure their progress against predetermined internal goals, a certain competitor, or the overall industry. In addition, tracking various ratios over time is a powerful way to identify trends as they develop. Ratios are also used by bankers, investors, and business analysts to assess various attributes of a company's financial strength or operating results."
- Encyclopedia of Small Business
Ed. Laurie Collier Hillstrom and Kevin Hillstrom. Vol. 1. 2nd ed. Detroit: Gale, 2002. p502-505.