Assignment task: Respond to Ratio analysis is "the calculation of ratios from data in these [financial] statements" (Wheelen et al., 2018). The main goal of this ratio analysis is to identify financial issues that might arise, and it can be used for personal finances and for businesses as a whole (Wheelen et al., 2018). There are several different types of ratios that are examined, including leverage ratios, profitability ratios, liquidity ratios, and activity ratios. Financial ratio analysis is important for companies because ultimately, if companies do not make money, they cannot operate; they will not be able to pay their employees and they will not be able to pay for supplies and a place to operate. Ratio analysis helps businesses in ways from measuring how much debt a business has in comparison to the income they have coming in, to the amount of net income the company has generated by sales dollars (Financial ratios-what they are and how to use them 2023). In much of the same way, financial ratio analysis is important for individuals because individuals still rely on money to survive. People incur debt all the time, and need to figure out how much money they need in order to