The process can be difficult and take some time, but to develop a true idea of ​​the company's status, one must perform ratio and financial statement analysis in order to to find the underlying problems that found that the company is losing money. Research on ratio analysis and financial statements has been going on for years, with different results and different methods for forecasting a company's financial future. Ratios are very important in financial statements because they allow companies to compare financial data with themselves. By analyzing financial statements, it allows individuals to invest and the company to see where they are in a current financial situation and predict the future situation of the company by seeing improvements or improvements.