Ratio analyzes can be used to evaluate performance, analyze trends, assess industry benchmarks and forecast growth within a company (Knežević, Rakočević and Đurić, 2011). Additionally, investors use financial ratios to make decisions regarding the viability of investments, the potential growth of the company, how well a company manages its debt, and how effectively a company manages its cash flow (Gibson, 2011 ). Before investing in a company, investors should also evaluate the potential leverage of the investment. The company's earnings ratios, dividend yields and book value per share should also be evaluated. This article profiles a regional restaurant chain, Frisch's Restaurants, Inc. (Frisch's) and discusses the various ratios relevant to investors interested in Frisch's, such as Diploma. financial leverage, price-to-earnings ratio, percentage of retained earnings, dividend yield and book value per share. Additionally, it contains a section including a common-size vertical analysis of gross profit and operating profit based on sales. Additionally, throughout the paper, discussions will detail the findings and define what investors could use in a decision regarding investing in Frisch. Frisch's are operated regionally in Ohio, Kentucky, and Indiana (Frisch's, n.d.). It "operates full-service family-style restaurants under the name 'Frisch's Big Boy'" (Frisch's, nd, "Business Description," para. 1), and also offers drive-thru services. At the end of its 2013 fiscal year (which occurred on May 28), the company operated 95 Frisch's Big Boy restaurants and had licensed an additional 25 restaurants to other operators (Frisch's, 2013). Frisch's (2013) reported that it had 5,800 employees at the end of fiscal 2013 and also paid its 210th consecutive quarterly cash dividend at that time. A company's use of debt is called its financial leverage (Gibson, 2011). A measure of the use of debt can be found in the degree of financial leverage of a company. This measure shows the relationship between a company's operating income (earnings before interest and taxes) and its earnings per share (Gibson, 2011). As shown in Table 1, Frisch's degree of financial leverage was 1.20 in 2006 and 1.21 in 2007. This indicates that in 2006, for every dollar increase in operating profit, there was has a 1.21 times change in earnings before interest and taxes. Similarly, in 2007, a $1 increase in operating profit would result in a 1.20 times increase in earnings before interest and taxes..