
This paper unleashes the idea that financial ratio analysis is the one of the powerful tool to analysis the financial Statements. It provides meaningful understanding and interpretation which absolute accounting data cannot provide. Financial ratio analysis is important to the management, owners, customers, suppliers, competitors, regulatory agencies, tax payers and lenders each having their views in applying financial statement analysis in their evaluations and making judgments about the financial health of organization, while some authors found that financial ratios analysis is an adequate method by which to evaluate the overall performance of an organization.