4 Full PDFs related to this paper. Regression analysis help in making prediction and forecasting for business in near and long term. Advantages And Application Of Ratio Analysis Analysis Financial Analysis Financial Health The Pareto ratio is only a rule of thumb and in practice you should not expect to see this exact. . Ratio analysis can be defined as the process of ascertaining the financial ratios that are used for indicating the ongoing financial performance of a company using a few types of ratios such as liquidity profitability activity debt market solvency efficiency and coverage ratios and few examples of such ratios are return on equity current ratio quick ratio. Sanjay Borad is the founder CEO of eFinanceManagement. There are certain limitations for ratio analysis as it only considers quantitative aspects and fully ignores the qualitative aspects it does not take into consideration the reasons for fluctuation of amounts due to w...