Define: Ratio Analysis

Business, Legal & Accounting Glossary

Definition: Ratio Analysis



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Full Definition of Ratio Analysis


Ratio Analysis is a tool used by individuals to conduct a quantitative analysis of information in a company’s financial statements.

Application of Ratio Analysis

Ratios are calculated from current year numbers and are then compared to previous years, other companies, the industry, or even the economy to judge the performance of the company.  Ratio analysis is predominately used by proponents of fundamental analysis.


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Ratio Analysis. PayrollHeaven.com. Retrieved April 07, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/ratio-analysis/

Definition Sources


Definitions for Ratio Analysis are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 22nd March, 2020