Ratio

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1. Maths and finance.

A ratio is one number divided by another.

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.


See also