Financial analysis is an effective tool of evaluating the efficiency and performance of each business organization. It is important for actual investment made by the investors or own capital invested by the owners. Without financial analysis, a business organization is unable to identify the actual worth in the market. Financial analysis is advised to management that a sound found plans and policies are to be developed for the development of its business. It is same as in the interest of a human being's good health, medical authorities suggest a periodical medical examination. The financial analysis can be determined on the basis of various techniques. But, ratio analysis is one of the important techniques of analysis of performance of a business organization. In this paper, the company's performance appraisal has been explained using various ratios. The ratio explains the financial capacity of business.
