Desperate need of help in accounting question.

Please discuss in detail how business owners and leaders can use financial statement ratios to make decisions.

There are about as many ratios as there numbers used to manage a business. How they are used to make decisions totally depends on the decision. I would also add that in my opinion, managers that make decisions on numbers and ratios alone aren't good managers. The only information in those numbers are what's happened in the past. You can't find your way forward by looking backwards. The absolute most valuable skill a business manager can have is the vision to see where the market for the products or services they produce is headed. With that ability, when the ratios are finally calculated, they always look good.

A list of ratios:

http://cpaclass.com/fsa/ratio-01a.htm