ratio analysis


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

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ratio analysis ratio analysis analysis

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   Determination of the prospective future performance of a company. An analysis of a company's accounts involving examining three kinds of ratios - profitability, liquidity and balance sheet ratios.

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ratio analysis UK US noun [C or U]
ACCOUNTING, MANAGEMENT a study of the relationships between different amounts or numbers in a company's financial records in order to see how successful the company is: »

He carried out a detailed ratio analysis of the company's accounts.


Financial and business terms. 2012.

Look at other dictionaries:

  • 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 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 …   Auditor's 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 [əˈnælss] 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