what is an example of ratio analysis 
consider the inventory turnover ratio that measures how quickly a company converts inventory to a sale a company can track its inventory turnover over a full calendar year to see how quickly it converted goods to cash each month then a company can explore the reasons certain months lagged or why certain months exceeded expectations the bottom linethere is often an overwhelming amount of data and information useful for a company to make decisions to make better use of their information a company may compare several numbers together this process called ratio analysis allows a company to gain better insights to how it is performing over time against competition and against internal goals ratio analysis is usually rooted heavily with financial metrics though ratio analysis can be performed with non financial data 