Analyzing a company's financial health involves carefully examining its financial statements – the balance sheet, income statement, and cash flow statement – and using various analytical tools and ratios. Here's a step-by-step process:

1. Profitability Analysis: Using the income statement, assess the company's profitability. Key ratios include gross profit margin (gross profit/revenue), operating profit margin (operating profit/revenue), and net profit margin (net profit/revenue). Rising margins typically indicate increasing efficiency and profitability.
2. Liquidity Analysis: Analyze the balance sheet to evaluate the company's liquidity, which is its ability to cover short-term liabilities. Key ratios are the current ratio (current assets/current liabilities) and the quick ratio [(current assets - inventory) / current liabilities]. These ratios measure the company's ability to pay off its short-term obligations.
3. Solvency Analysis: Assess the company's long-term financial stability or solvency. Key ratios include the debt-to-equity ratio (total liabilities/total equity) and the debt ratio (total debt/total assets). Lower values generally indicate a more financially stable company.
4. Efficiency Analysis: Analyze how effectively the company is using its assets and managing its liabilities. Important ratios include inventory turnover (cost of goods sold/inventory), receivables turnover (net credit sales/accounts receivable), and asset turnover (net sales/average total assets).
5. Investment Analysis: Determine the company's attractiveness to investors. Key ratios include earnings per share (net income/number of shares outstanding), price-to-earnings ratio (market price per share/earnings per share), and dividend yield (annual dividends per share/market price per share).
6. Cash Flow Analysis: Review the cash flow statement to see how the company generates cash from operating activities, how it spends cash in investing activities, and how it raises and returns cash in financing activities.
7. Trend Analysis: Analyze the company's financial trends over time. Look for trends such as increasing revenue, decreasing costs, and steady cash flow from operations.
8. Industry Comparison: Compare the company's financials and ratios to industry peers to gauge its performance relative to the market.

Remember, no single financial ratio or metric can provide a complete picture of a company's financial health. It's crucial to consider all these analyses together and understand the interrelationships between different aspects of a company's financial statements.