Ratio analysis: Difference between revisions
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imported>Doug Williamson m (Add link to Profitability ratio page.) |
imported>Doug Williamson (Expand definitions.) |
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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. | For example, Days sales outstanding. | ||
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2. | 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. | For example, Price to earnings ratios. | ||
Revision as of 13:28, 6 February 2019
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.
