Ratio and Round tripping: Difference between pages

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1. ''Maths and finance.''
1.


A ratio is one number divided by another.
An opportunity to undertake arbitrage which arises when a bank's customer can draw from overdraft facilities and deposit the proceeds in the money markets at rates which exceed the cost of the overdraft.


For example, the ratio of a company's share price to its earnings, known as the price to earnings ratio.


2.


Ratios are widely used in finance as part of financial ratio analysis.
More generally, a series of transactions containing a self-cancelling or circular element, usually undertaken to make an arbitrage gain or to enjoy some other advantage.  
 
Depending on the relationship being measured, financial ratios are generally expressed as numbers, for example a price to earnings ratio of 10.
 
Other ratios are conventionally expressed as percentages, for example a dividend yield of 2%.
 
 
2.
 
''Law''.
 
Abbreviation for Ratio decidendi.




== See also ==
== See also ==
* [[Dividend yield]]
* [[Arbitrage]]
* [[Earnings per share]]
* [[Overdraft]]
* [[Price to earnings ratio]]
* [[Switching]]
* [[Ratio analysis]]
* [[Ratio decidendi]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:The_business_context]]
[[Category:Compliance_and_audit]]

Latest revision as of 08:42, 2 July 2022

1.

An opportunity to undertake arbitrage which arises when a bank's customer can draw from overdraft facilities and deposit the proceeds in the money markets at rates which exceed the cost of the overdraft.


2.

More generally, a series of transactions containing a self-cancelling or circular element, usually undertaken to make an arbitrage gain or to enjoy some other advantage.


See also