Why does financial statement analysis typically rely heavily on examining financial ratios as opposed to absolute numbers

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Why does financial statement analysis typically rely heavily on examining financial ratios as opposed to absolute numbers (for example, net income-to-sales as opposed to just net income)?
Financial Ratios
The term is enough to curl one's hair, conjuring up those complex problems we encountered in high school math that left many of us babbling and frustrated. But when it comes to investing, that need not be the case. In fact, there are ratios that,...
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Fundamentals of Investments

ISBN: 978-0132926171

3rd edition

Authors: Gordon J. Alexander, William F. Sharpe, Jeffery V. Bailey

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