Financial ratio analysis: tools used to evaluate financial performance / Nadzir Awang Ahmad @ Said

All organizations that are established have the intention of achieving their respective objectives. The greatness of an organization can be determined by periodically reviewing its performance. Parties interested in evaluating financial performance, business expansion, and planning for the future should consider the importance of financial statement analysis. Understanding financial ratios and using them to evaluate financial statements can provide valuable insights into the state of a company's finances, as well as the profitability of past investments. The significance of these insights for effective management cannot be overstated, as the financial health and profitability of a company are crucial for its long-term success (Fan & Loang, 2023).