The process can be difficult and time consuming, but to develop a true sense of the company's status you need to perform ratio analysis and financial statements in order to find the issues underlying data that discovered the company is losing money. Research on ratio analysis and financial statements has been going on for years, with different outcomes and different methods for predicting a company's financial future. Ratios are very important in financial statements as they allow companies to compare financial data with themselves. Through financial statement analysis it allows individuals to invest in the company and see where they are in the current financial situation and to predict the future state of the company by seeing improvements or