This document discusses ratio analysis, which is a technique used to measure the strength and weaknesses of an organization using financial reports. It defines ratio analysis and lists its advantages as measuring efficiency, liquidity, borrowing capacity, and overall financial position. Various types of ratios are described such as liquidity ratios, solvency ratios, activity ratios, profitability ratios, and shareholders' ratios. Formulas for calculating specific ratios like current ratio, debt-equity ratio, capital turnover ratio, and return on equity are provided. The document concludes with a thank you.