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Financial reports report business transactions or economic events that occur over a period of time. The business transactions or economic events that take place are in the form of numbers. In order to assess the financial condition and performance of the company, the figures in the financial report will become more meaningful if they are compared to each other in the form of financial ratios. The financial ratio is a major tool for financial analysis. This financial ratio can be used at least to answer the following five questions: (1 how the liquidity rate of companies; (2) how effective management in producing profit; (3) how the need for corporate funds is financed; (4) how high the return rate For shareholders; and (5) whether the company 's operating target has been reached. The book can be used as a reference, especially for those who are interested in studying applications, including interpretations of the results Calculations of business financial ratios are more careful and profound. The diskussion in this book uses a very simple language, allowing readers to understand it more easily and practically.