Ratio analysis

1.

Ratio analysis is a method of financial analysis based on financial accounting ratios; comparing various accounting items with each other as ratios.

For example, Days sales outstanding.

2.

The term 'ratio analysis' is also used to describe a broader quantitative analysis, also including relevant operational and market measures in the various ratio calculations, as well as accounting items.

For example, Price to earnings ratios.

See also

• Days sales outstanding
• Financial analysis
• Price to earnings ratio
• Profitability
• Profitability ratio