Answer:
1.(Ratio analysis) is a quantitative method of gaining insight into a company's liquidity, operational efficiency, and profitability by studying its financial statements such as the balance sheet and income statement. (Horizontal)is the opposite of vertical. for eg:A man lying flat on the floor is the same as a man lying horizontally on the floor.The word (vertical)can also be used to describe the motion of objects.for eg:the motion of an apple falling from a tree, would be vertical motion.
2.because Ratios measure companies' operational efficiency, liquidity, stability and profitability, giving investors more relevant information than raw financial data. Investors and analysts can gain profitable advantages in the stock market by using the widely popular, and arguably indispensable, technique of ratio analysis.
Step-by-step explanation:
............