- ratio analysis
- The analysis of *financial statements through the investigation and interpretation of *ratios. Examples of important ratios include (i) the *acid test ratio, (ii) the *current ratio, (iii) the *debt-equity ratio, (iv) the *interest coverage ratio, and (v) the *price/earnings ratio. Financial statement ratios are often assessed in comparison with sector averages.
Auditor's dictionary. 2014.
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ratio analysis — A way of expressing relationships between a firm s accounting numbers and their trends over time that analysts use to establish values and evaluate risks. Bloomberg Financial Dictionary * * * ratio analysis ratio analysis ➔ analysis * * *… … Financial and business terms
Ratio Analysis — A tool used by individuals to conduct a quantitative analysis of information in a company s financial statements. Ratios are calculated from current year numbers and are then compared to previous years, other companies, the industry, or even the… … Investment dictionary
ratio analysis — The use of accounting ratios to evaluate a company s operating performance and financial stability. Such ratios as return on capital employed and gross profit percentage can be used to assess profitability. The liquidity ratio can be used to… … Accounting dictionary
ratio analysis — The use of accounting ratios to evaluate a company s operating performance and financial stability. Such ratios as return on capital employed and gross profit percentage can be used to assess profitability. The liquid ratio can be used to examine … Big dictionary of business and management
ratio analysis — examination of calculated indices based on accountants reports … English contemporary dictionary
ratio analysis — / reɪʃiəυ əˌnæləsɪs/ noun a method of analysing the performance of a company by showing the figures in its accounts as ratios and comparing them with those of other companies … Dictionary of banking and finance
Cross-Sectional Ratio Analysis — A method of analysis that compares a firm s ratios with some chosen industry benchmark. The benchmark usually chosen is the average ratio value for all firms in an industry for the time period under study. Bloomberg Financial Dictionary … Financial and business terms
trend ratio analysis — The comparison of the successive values of each ratio for a single firm over a number of years. Bloomberg Financial Dictionary … Financial and business terms
analysis — a‧nal‧y‧sis [əˈnælss] noun analyses PLURALFORM [ siːz] [countable, uncountable] 1. a careful examination of something in order to understand it better: • The researchers carried out a detailed analysis of recent trends in share prices. •… … Financial and business terms
ratio — A *quantitative relationship between two amounts. A ratio is calculated by dividing one amount by another, to see how many times the value of one item is contained in the other. See *ratio analysis … Auditor's dictionary