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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 ?
PEG ratios ignore the fact that the intrinsic value of a stock is determined by growth and risks.
The commission ratios have been calculated as a ratio of net commission and gross written premium.
Thus the telecommunications sector provides an ideal area for examining the relevance of the cash flow ratios against the traditional ratios.
Also PLC/servo-motor-controlled metering and mixing systems with pushbutton ratio, shot size, and output rate control.
In response to concerns about a shifting sex ratio among members of the Aamjiwnaang First Nation community near Sarnia, Ontario, a team of Canadian researchers examined birth records for the group from the years 1984-2003 as part of a broader community-based investigation.
Effects of aspect ratio on stresses and deformations of tires Distribution of stresses and deformation in tires is one of the primary properties that could determine many other tire properties and performance, and is greatly affected by aspect ratio.
1991) that examined instructional ratios for drill tasks generally used the number of items learned and later recalled as the dependent variable.
Here comes the confusing bit: When administrators complain about the new ratios, they complain both about a shortage of money to adequately staff the hospitals, and claim that a shortage of nurses to serve nearly 450 hospitals throughout the state has led to the closure of hospitals, ERs and psychiatric wards.
For workers' compensation, improved estimates of payroll and of trending of payrolls for future periods will serve to improve loss ratios.
We used interchanged 1:1 ratios here to minimize ambiguities, and the same set of bridge windings in every interchanged measurement.
Delineating participation ratios by transfer-level, remedial, and occupational courses provides a comparison of enrollment in various types of courses and provides a common comparison between the categories.
At higher velocity ratios, when the flow is turbulent, mixing is significantly affected by the velocity ratio, but there is no clear indication that mixing is affected by the stock consistency.