The quality business indicates a safe and successful business. Different financial ratios
are used to evaluate the financial condition and performance. Although, there is not a
definite list of financial ratios to be used, it is important to interrelate two values of the
same kind. The given values would only than be meaningful. Financial ratio analysis
provides answers to several questions: is the entity primarily financed by foreign sources
of assets, do the customers pay promptly and in accordance with the contracted
agreement, are the operating costs too high and do they endanger the long-term stability
and business performance (VSBDC, 2004). The significance of certain financial ratio
differs depending on the information needs of the users (table 1). Creditors are interested
in the information regarding due payment of their loans and the interest. Liquidity and
solvency of their clients are of their primary concern. Equity investors (shareholders) are
concerned with long-term profitability and financial condition. From the management's
point of view, the use of financial ratios, as the relative magnitude of two or more