ratio analysis

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 — 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

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  • 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

  • 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

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