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.

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.

financial ratio

see ACCOUNTING RATIO.

References in periodicals archive ?

Financial ratio selection for business failure prediction using soft set theory.

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Between the numbers

Predicting construction contractor default with optionbased credit models--models' performance and comparison with financial ratio models, Journal of Construction Engineering and Management 137(6): 412-420.

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A result from the survey showed that financial ratio is one of five most important criteria in the private sector.

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