DECA Financial Consulting Complete Practice Exam

The primary function of financial ratio analysis is to assess a company’s financial performance. This type of analysis involves evaluating the relationships between different financial statement accounts to gain insights into a company's operational efficiency, profitability, liquidity, and solvency. By examining various ratios—such as return on equity, current ratio, and debt-to-equity ratio—stakeholders can make informed judgments about the company's financial health and how well it generates returns relative to its assets and liabilities.

While projecting future sales performance, determining product pricing strategies, and analyzing customer satisfaction metrics are important aspects of business analysis, they do not directly relate to financial ratio analysis. The focus of financial ratios is specifically on the quantitative assessment of a company’s financial results, which ultimately aids in making investment decisions, credit evaluations, and strategic planning. This is why option B stands out as the correct answer.