FINANCIAL RATIO ANALYSIS AS A TOOL FOR PERFORMANCE EVALUATION: A DESCRIPTIVE INDUSTRY-BASED STUDY

Financial ratio analysis is an essential financial management tool that contributes significantly to performance evaluation and organizational decision-making. The descriptive analysis demonstrated that financial ratios provide a systematic and meaningful approach to interpreting financial statements and understanding business performance. By evaluating liquidity, profitability, solvency, and efficiency indicators, organizations can gain a comprehensive view of their financial health and operational effectiveness. Ratio analysis supports transparency, financial control, and strategic planning while enabling management to identify opportunities for improvement. Therefore, the study concludes that financial ratio analysis remains a reliable and practical technique for evaluating organizational performance and achieving sustainable business growth in a competitive business environment.

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