A company is always being evaluated on the basis of its financial performance. A company, which has a good financial health is considered to be good in operations and management. A company with a healthy financial condition can capture the market more than others with less healthy financial conditions. To evaluate any financial conditions of any firm ratio analysis is the best way to evaluate them. Ratio analysis refers to the calculation of the different structure of the firm. When calculating any ratio, it focuses mainly on two variables related to it.