History Analysis

History Analysis of Financial Ratios, indicators, or ratios of Reasons, was one of the earliest tools of financial analysis developed in the early nineteenth century, the use by analysts of financial statements became apparent, special way, using the current ratio and liquidity ratio. During the twentieth century, there was a standardization of the set of indices were created. For this purpose, optimal levels were established for each financial ratio, regardless of whether the entity or organization to analyze was the state of the economy of a country or a particular company. Due to the many differences in the organizations, the current use of these reasons can or should be standardized, since each company or organization that has identified optimal, depending on the activity developed, using time limits, etc. .