Ratio analysis is a technique used for analysing financial statements, but it is only useful if it is based on items from the same financial statement; that is, if the items being compared are either exclusively all from the statement of comprehensive income or all from the balance sheet.

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Ratio analysis often involves comparing items from different financial statements, such as the balance sheet and the statement of comprehensive income, to assess a company's financial health and performance.

Ratio Analysis Is a Technique Used for Analysing Financial Statements