Compares items listed on a single financial statement (vertical analysis) – for example – current assets in relation to current liabilities, or compares items listed on separate financial statements relating to a business in the same financial year – for example – expressing operating profit as a percentage of total capital (long-term debt and equity) employed. Ratio analysis is the most common form of financial analysis as it enables comparisons to be made across the years for a single business, or across different businesses.