Ratios are powerful tools for measuring and comparing values. They provide a concise way to compare two separate quantity or values, usually expressed as a ratio or fraction between two numbers. Ratios are useful when comparing values between different entities or activities and can be used to better understand relationships between data. Ratios provide valuable insights and allow us to efficiently analyze and compare the data. Ratios make it easier to compare multiple data points across various timeframes, markets, and regions. For instance, analysts often use the price-earnings ratio to compare stocks, or the debt-to-income ratio to assess creditworthiness. Ratios also make it easier to analyze trends over time and compare the growth or decline of different entities. Ratios are particularly useful for benchmarking performance and making decisions. For example, ratios such as the days sales in inventory (DSI) and the cash conversion cycle (CCC) provide measures of operational efficiency that can help managers determine whether to increase or decrease inventory levels. In addition, ratio analysis can provide key information in pricing products and services. Ratios such as gross profit margins, ratios of fixed costs to sales, and operating margins can help managers in their decision-making. Ratios are versatile tools that can provide useful insights into data, which helps inform decision-making, benchmarking, and other analyses.