1. Ratio Analysis is a tool to examine the health of Business with a view to make financial results more meaningful. Illustrate.

Ratio analysis helps in assessing the health of a business and in spite of that it also helps in measuring the performance of two businesses. It also helps in the business planning process as SWOT, being the basic tool of the strategic analysis plays a vital role in a business planning process and no SWOT analysis would be complete without an analysis of companys financial position. Analyzing is done by different users such as investors, management, bankers and creditors who use the ratio to analyze the financial situation of the company for their decision making purpose. These ratios are important for judging the companys efficiency in terms of its operations and management. They also help in judging how well the company has been able to utilize its assets and earn profits. The weakness of the companys operations can be located even if the overall performance of the company may be quite good. So the management can pay heed to the weakness and take measures to ensure that these weaknesses are overcome. As mostly the ratios are used to compare the past performances of the company, they can also be used to make plans for the future of the company and the trends of its financial performance. It is very important to know how well the company is performing over the years and compare other firms which are of similar nature. It is also important to know how other divisions are performing among themselves in different years. Therefore Ratio Analysis is an important tool to examine the health of Business and it helps in making financial results more meaningful.

2. Analysis without interpretation is meaningless and interpretation without analysis is impossible. Discuss.
The main purpose of analysis and interpretation is to transform the data collected into credible evidence about the development of the intervention and its performance. Analysis helps in understanding the difference between the different components. It helps in organizing the data for analysis, that is, the preparation of data. It helps in describing the data and interpreting the data the assessment of the findings against the adopted evaluation criteria. It helps in measuring the degree of change that has taken place and allows an assessment to be made about the consistency of data. Therefore without interpretation analysis is meaningless and it is only after an analysis is made the work can be interpreted.