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 ?

Each year, RMA updates two Annual Statement Studies: Financial Ratio Benchmarks (FRB) and Industry Default Probabilities and Cash Flow Measures (IDP).

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

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Impact of IFRS adoption on financial decisions case study of Indian Information Technology Industry : Wipro Ltd

Although such assets are not capitalized under GAAP, the article noted that the recognition of Apple's brand value would result in the transformation of a key financial ratio that would enable analysts to restate an outlier metric to a less statistically extreme value.

Reimagining the financial ratios: comparing brand values in the technology industry

Various firm financial performance measures, then, correspond to the items on a test of student ability, and the difficulty of getting a favorable reading on a financial ratio corresponds to the difficulty of a particular test item.

Using a Rasch model to rank big pharmaceutical firms by financial performance

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.

Econometric model used in decision-making process of company financing

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.

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.

Prediction of default probability for construction firms using the logit model

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

Entropy for business failure prediction: an improved prediction model for the construction industry

Financial ratio analysis is a widely accepted technique of financial statement analysis (Rathore et al.

Investment decision making using a combined factor analysis and entropy-based TOPSIS model