ratio


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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.
References in periodicals archive ?
Course Completion Ratio = Total number of two or more transfer-level courses completed with a passing grade / Total number of two or more transfer-level courses in which the student enrolled It is important to note that the students in this sample are only those students who reported aspiration to transfer.
For the fiber stock tested, mixing is significantly dependent on the stock consistency when the velocity ratio is small (Rv @ 1).
The degree ratio, which is again the total number of high-school graduates in a given year divided by the total population of 17-year-olds, has a number of advantages over the Current Population Survey data as an indicator of graduation rates, First, the Current Population Survey uses only a sample of households, whereas the numerator of the degree ratio can be calculated using data on the full population of high-school graduates, since data on all diplomas awarded are collected by the Department of Education.
Again, for a fund this ratio is the weighted average of the fund's stock holdings.
They found that applying a force in the appropriate direction increased the distance between ion layers in a different direction, confirming that an ion crystal can exhibit a negative Poisson's ratio without a change in volume.
A comparison between Sr/Bi ratio and Si modification shows that as the Sr/Bi ratio increased, the level of Si modification also increased.
I like to see a company with a low price-to-book ratio and a high and rising return-on-equity," he says.
The HAR must be tested in the sixth year (referred to as the recomputation year) by computing an actual absorption ratio for that year.
The owner settles at 45 percent and the only affirmative statement that the ratio is 35 percent is coming from the state, and that ratio is litigated by the city, and held in abeyance, so you are left with the city's statement it's 45 percent," explained William K.
He also heard Clary's motion challenging the sentencing statute and claiming that the ratio has a disproportionate impact on blacks.
Second, for many institutions, particularly for those in New England, this leverage ratio adjusted for the condition of the bank has become the most binding capital ratio, making the risk-weighted capital ratios irrelevant.
10) The allowable related group indebtedness is equal to the product of multiplying the aggregate value of CFC assets by the foreign base period ratio (FBPR).