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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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

Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
References in periodicals archive ?
Financial ratio selection for business failure prediction using soft set theory.
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Gearing is a general term describing a financial ratio where the denominator is a form of capital belonging to the owner (or capital) and the numerator represents the borrowed funds.
While financial ratio analysis helps in assessing factors such as profitability, efficiency and risk, added factors such as macro-economic situation, management quality and industry outlook should also be studied in detail while investing in a stock.
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.
A result from the survey showed that financial ratio is one of five most important criteria in the private sector.
Financial ratio analysis is a widely accepted technique of financial statement analysis (Rathore et al.

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