Ratio and Ratio analysis: Difference between pages

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1. ''Maths and finance.''
1.
 
A method of financial analysis based on financial accounting ratios; comparing various accounting items with each other as ratios.
A ratio is one number divided by another.
For example, Days sales outstanding.
 
For example, the ratio of a company's share price to its earnings, known as the price to earnings ratio.
 
 
Ratios are widely used in finance as part of financial ratio analysis.
 
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%.
 
Ratios may also be expressed as proportions, for example a debt to equity ratio of 1:1 (the same as 100%, or 1).
 
 
2. ''Law''.
 
Abbreviation for Ratio decidendi.


2.
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 ==
== See also ==
* [[Debt to equity ratio]]
* [[Days sales outstanding ]]
* [[Dividend yield]]
* [[Financial analysis]]
* [[Earnings per share]]
* [[Financial ratio]]
* [[Price to earnings ratio]]
* [[Price to earnings ratio]]
* [[Ratio analysis]]
* [[Ratio decidendi]]


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

Revision as of 14:20, 23 October 2012

1. 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. 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


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