financial ratio


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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

see ACCOUNTING RATIO.
References in periodicals archive ?
The evidence that ratings and rating changes are more efficient predictors of insolvency over some ranges of relative misclassification costs might support the use of ratings and rating changes rather than financial ratios by consumers, insurance agents and other parties who might rely exclusively on ratings to evaluate insurers because of the higher information cost of financial ratio analysis.
The extensive introduction fully describes each ratio, including how to calculate and interpret each financial ratio.
At the start of the ranking process, the financial ratio was calculated by gray model in 5 different time periods for each of the companies.
Table 3-3: Mittal Steel Company - Key Financial Ratio (2003-2005)
Table 3-2: Nucor Corporation - Key Financial Ratio (2003-2005)
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.
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.

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