Ratio Analysis

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Definition: Ratio Analysis

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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https://payrollheaven.com/define/ratio-analysis/
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Ratio Analysis. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
May 18, 2024 https://payrollheaven.com/define/ratio-analysis/.
Chicago Manual of Style (CMS):
Ratio Analysis. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/ratio-analysis/ (accessed: May 18, 2024).
American Psychological Association (APA):
Ratio Analysis. PayrollHeaven.com. Retrieved May 18, 2024
, 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 | 0 Views.