“Understanding the financial ratios is key point in the success of any business. Capital is backbone of any business and every businessman wants to use his capital in such a way that he has to spend little and get high productivity by using his capital. Businessman always wants to reduce their costs and earns high profit which need a total planning and structure so that he can get desired results. And financial ratios are toll to check all these. Financial ratios help the business to analyze the fluctuation in financial conditions and to check how the business is going over the time. These ratios help to understand the strength and weakness of business. There are hundreds financial ratios which are used by using business, whether they are service oriented or industry. Banking companies in Pakistan are most profit making organizations of which are working since last many decades. Many researchers have been completed research on financial statement analysis of banking companies but there is always a place of improvement in every field of life. Financial statement analysis is key of calculation of financial data. It provides opportunity to predict about the growth of organization and to make improvement in all the sectors and to make future plans.