Ratio analysis provides an owner with a "snapshot" of the company's financial picture at a single instant; therefore, she/he should track these ratios over time, looking for trends that otherwise might go undetected.

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Ratio analysis is a tool used to assess a company's financial performance and position. By tracking these ratios over time, an owner can identify trends, strengths, and weaknesses, and take corrective actions if necessary. A single snapshot of ratios can be useful, but ongoing monitoring is essential for making informed business decisions.

Ratio Analysis Provides an Owner with a "Snapshot" of the Company's