Finance ratios are a useful tool for businesses to measure their performance and assess the current status of their financial activity. These ratios enable them to monitor their finances closely and spot any potential issues before they become major problems. Financial ratios provide insights into liquidity, efficiency, profitability, debt levels, and shareholder value. They can be used to benchmark company performance against industry standards, or compare different companies within an industry. Ratios also play an important role in predicting future outcomes, as they provide an indication of the business’ trajectory. By using financial ratios, businesses can make decisions that will put them on the path to success.