ratio

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Related to ratios: Liquidity ratios, Financial ratios

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 ?
Piston-metering units for encapsulating/potting, gasketing, molding, and sealing provide precise ratio control using rotary flow-control valves for accuracy.
Although there is as yet no direct evidence linking this human sex ratio decline to environmental exposures, the circumstantial evidence suggests there may be a connection.
Studies show that when the aspect ratio is decreased, the stresses in belt cords increase, while stresses along the carcass cords and circumferential stresses in the bead wires decrease.
However, none of these studies compared different ratios of known, or easier tasks, to unknown items.
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.
The type-specific success ratios only included students who took at least one corresponding course.
APPLICATION:This study demonstrates the importance of high velocity ratio in producing a uniform stock mixture in concentric thick stock dilution before the fan pump.
Black women had a higher pregnancy-related mortality ratio than white women in every age-group studied.
However, since many youth earn their high-school degree at age 17, the degree ratios actually vary little with changes in cohort size.
On the other hand, growth investors specialize in hot or emerging markets and companies with high P/E, price-to-book and price-to-cash-flow ratios.