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 and other ratios help analysts determine whether a company's share price properly reflects its performance.

ratio

The relation between two quantities when compared mathematically with one another. For example, the most frequently used ratio among investors is the price-earnings ratio. Financial analysts, investors, and managers use ratios to evaluate many factors such as the attractiveness of a stock or the operating efficiency of a company. Also called financial ratio. See also activity ratio, debt management ratio, liquidity ratio, profitability ratio.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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References in periodicals archive

Taking into account the conformity between various definitions of parameters of loading regime, the deviation is expressed in the invariant form through the corresponding cross ratio for the variable [m.sub.1]:

For this purpose, we will consider the cross ratios for quantities (or variables) [m.sub.1] and [m.sub.2], using their conformity, according to transformation (8).

Analysis of paralleling limited capacity voltage sources by projective geometry method

Since the cross ratio is invariant under projective transformations, it follows that [y.sub.j+2n](A) = [y.sub.j](A) for all j.

The pentagram map and Y-patterns

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