financial ratio

(redirected from Financial measures)

Financial ratio

The result of dividing one financial statement item by another. Ratios help analysts interpret financial statements by focusing on specific relationships.

Financial Ratio

The division of one piece of financial information by another. Financial ratios are very common in fundamental analysis, which investigates the financial health of companies. An example of a financial ratio is the price-earnings ratio, which divides a publicly-traded company's share price by its earnings per share. This helps analysts determine whether a company's share price properly reflects its performance.

financial ratio

See ratio.

financial ratio

References in periodicals archive ?
While many investors find non-GAAP financial measures helpful (and have come to expect them), news headlines and regulatory scrutiny continue to highlight concerns about the overuse and the expanding variety of non-GAAP financial measures.
This practice is especially common in the United States, where public companies routinely report a variety of non-GAAP financial measures to present and prospective investors.
Non-GAAP Financial Measures During fiscal 2007, the Company began selling iPhone and Apple TV.
The financial measures grow in complexity and are very specific in nature due to the characteristics of the industry, processes and goals.
They use traditional financial measures such as return on equity or return on assets to determine performance.
Besides problems with technology, respondents say their current measurement systems are: not aligned with strategic business objectives; reliant on lagging performance indicators; poorly integrated with other information (internal and external); and far too dependent on financial measures.
For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles, please see the section of the accompanying Table 1 titled "About Non-GAAP Financial Measures.
Non-GAAP Financial Measures 
During fiscal 2007, the Company began selling the iPhone and Apple TV.
Financial measures only reflect last year's performance and, as such, don't provide incentives for creating future value.
QLogic uses certain non-GAAP financial measures to supplement financial statements based on GAAP.
While the GAAP results provide significant insight into the Company's operations and financial position, management supplements its analysis of the business using financial measures that look at the total sales, related product costs and resulting income for iPhones and Apple TVs sold to customers during the period.
The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing its financial measures with other companies in the Company's industry, many of which present similar non-GAAP financial measures to investors.

Full browser ?