financial ratio

(redirected from Financial ratios)

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 ?
CFMA's Construction Industry Annual Financial Survey collects data on 20 key financial ratios, providing overall and best-in-class averages for the construction industry as well as for specific regions and industry sectors.
The current study presents a performance evaluation model based on financial ratios that incorporate financial performance score and regress it against the ten ratios considered appropriate for the construction industry firms.
In a new report, Moody's Investors Service describes the specific financial ratios it uses to gauge the financial strength of the property and casualty insurance companies it rates.
If implemented effectively, the Standard should eliminate most of the periodic, large write-offs and improve the usefulness of certain popular financial ratios used in performance evaluation.
The large number of potential financial ratios, along with changes in important predictor variables over time, make it costly to use financial ratios compared to summary risk measures, such as ratings and rating changes (see Denenberg, 1967; Wakeman, 1981).
A report by an independent CPA or appropriate state agency based on the EPA's procedures engagement relative to the local governments financial ratios.
Another area given as a starting point is the computation of various financial ratios by the agent.
Financial Ratios and the Prediction of Corporate Failure.
com/research/2338cd1c/irs_corporate_fina) has announced the addition of the "IRS Corporate Financial Ratios - 27th Edition" report to their offering.
In this regard, the financial ratios are the most important tools to predict the financial situation, stop financial crisis of companies and even help financial growth.
Table 46: International Business Machines Corporation: key financial ratios 68
Builders can see how they measure up against industry-wide averages in areas including: Gross margin net profit; cost of goods sold; financial ratios (current ratio, debt-to-equity ratio, and more).

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