| | | | Ratio analysis is an invaluable tool used to decipher and compare companies, either by using figures in the financial statements or investor data relating to stock market performance.
Ratios are most commonly used by analysts and investors to help determine whether a stock should be bought, held or sold, and if it represents good value in relation to its competitors.
Lenders on the other hand will use ratios to help decide if the company can pay back the debt it is requesting, paying attention to the cash flows of the business. | | | |
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