accounting ratio

Show Summary Details

Quick Reference

A ratio calculated from two or more figures taken from the financial statements of a company in order to provide an indication of the financial performance and position of that company. Ratios may be expressed as a percentage (e.g. return on capital employed) or as a multiple (e.g. rate of turnover). See financial-statement analysis; ratio analysis.

Subjects: Financial Institutions and Services — Accounting.

Reference entries

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.