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My project that explain about why accounting ratio important in any business organization. Accounting Ratio Analysis Ratio Analysis is very important in financial statements. Any business organization need to know their business results evaluation that enhances to find their current financial picture. Ratio analysis results that can be compare with similar industries figures. Using as a Bench mark it can be compared with same organizations or industry. Financial ratios provide a quick and relatively simple means of assessing the financial health of a business. Ratio can very helpful when comparing the financial health of different businesses. Ratios help to highlight the financial strengths and weakness of a business, but they cannot, by themselves, explain why certain strengths and weaknesses of a business. Ratios can be expressed in various forms, for example as a percentage or as a proportion. The way that a particular ratio is presented will depend on the needs of those who will use the information. There is no generally accepted list of ratios that can be applied to the financial statements, nor is there a standard method of calculating many ratios. Financial ratio classifications. • Profitability • Efficiency • Liquidity • Financial gearing • Investment Merely calculating a ratio will not tell us very much about the position or performance of a business. It is only when we compare this ratio with some “benchmark” that the information can be interpreted and evaluated.