What is a financial ratio? Why should marketers be pay close attention to financial ratios?

Financial ratios are based on accounting information.Most of them are most meaningful when they are used on a comparative basis (compared with industry standards,prior periods,competitors,and previously established plans or budgets).Each marketing manager should be concerned about the overall financial ratios of a company for two reasons.First,marketing contributes to the financial performance of a company and second,financial performance (e.g.,liquidity)can constrain or permit marketing strategies and activities.