The financial ratios can be considered as tool that can help you conduct financial analysis that is easy to follow and above all comparable. Each company is unique and using financial ratios can help you add comparability. Above all, using financial ratios can help you summarize all the information you have available from using the financial statements for example. Of course, using financial ratios should not be used on isolation As mentioned, financial ratios are tools that can help you analyze companies. You should create the context, calculate the applicable ratios and compare the performance and the position of the company with other similar companies.