Ratio analysis is a tool used by a small business owner to examine the overall health of the organization.

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Ratio analysis is a commonly used tool by small business owners to evaluate the financial performance and health of their organization. By comparing financial data such as revenue, expenses, assets, and liabilities, ratios can be calculated to provide insights into areas such as profitability, liquidity, and efficiency. This information can then be used to make informed decisions about the direction of the business and identify areas for improvement.

Ratio Analysis Is a Tool Used by a Small Business