This document discusses various financial ratios and measures that can be used to analyze the financial health and performance of a business. Ratios can be analyzed vertically within a period or horizontally across periods. Ratios should be interpreted considering industry and economic conditions, compared over time to identify trends, and benchmarked against key performance indicators. Common ratios discussed include gross margin, profitability, net profit to sales, inventory turnover, current ratio, asset turnover, and return on capital employed.