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Introduction to Ratios definitions

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Termini in questo insieme (15)

  • Ratio
    A numerical comparison showing how many units of one quantity exist for each unit of another, often expressed as a decimal or fraction.
  • Financial Analysis
    The process of evaluating financial data to make informed decisions about a company's performance and prospects.
  • Liquidity Ratio
    A measure indicating a company's ability to meet short-term obligations using its most liquid assets.
  • Solvency Ratio
    An indicator of a company's capacity to meet long-term debts and financial commitments.
  • Financial Leverage Ratio
    A metric assessing the extent to which a company uses borrowed funds to finance its assets.
  • Efficiency Ratio
    A calculation that evaluates how effectively a company utilizes its assets or manages its liabilities.
  • Profitability Ratio
    A tool for measuring how much profit a company generates relative to sales, assets, or equity.
  • Market Value Ratio
    A comparison involving a company's stock price and other financial figures to assess investment attractiveness.
  • Numerator
    The top part of a fraction or ratio, representing the quantity being compared per unit of the denominator.
  • Denominator
    The bottom part of a fraction or ratio, indicating the reference unit for the comparison.
  • Benchmarking
    The practice of comparing a company's ratios to those of competitors or industry averages to gauge performance.
  • Threshold
    A specific value or limit used to interpret whether a ratio signals acceptable or concerning performance.
  • Book Value
    The value of an asset or equity as recorded on the balance sheet, often based on historical cost.
  • Market Price
    The current value at which a company's stock is traded in the open market, reflecting investor sentiment.
  • Industry Average
    A standard or mean value of a particular ratio calculated across multiple companies within the same sector.