Ratio Analysis Ratios also allow for better comparison through time or between companies As we look at each ratio,ask yourself what the ratio is trying to measure and why that information is important Ratios are used both internally and externally 88 Ratio Analysis n Ratios also allow for better comparison through time or between companies n As we look at each ratio, ask yourself what the ratio is trying to measure and why that information is important n Ratios are used both internally and externally