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MEMO Ratio Analysis Ratio Analysis can make accurate judgements of an organisations performance. Ratio Analysis could be useful to many stakeholders in the business. * It helps Owners to inform them when they are looking to make decisions about the future of the business. * It helps investors to check that their investment is doing well and providing a fair return on their money. * Suppliers, if they are owed money by the business then they will want to know If they are likely to get their money back. * It helps employees to check the accounts to monitor how profitable the business is and therefore whether they can request pay rises or improvements on their working auditions. * It also helps customers to check that the business is likely to be financially healthy and therefore able to keep supplying them. Under the Ratio Analysis, there are three main headings used to calculate an organisations performance: 1 Profitability...

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