By using financial ratios, we could at least alert management about their performance. Planning for financial goals and future operating environments directs our concerns toward changes in performance outcomes. If major changes in performance trends occur, the company's financial success or failure will first come under review. Additionally, we can examine whether certain elements of the financial structure present a problem by comparing a company's data with that of similar companies. Overall, researchers suggest that every business entity should use ratio analysis due to the following significant aspects