Definitions
There is 1 meaning of the phrase
Financial Ratio.
Financial Ratio - as a noun
A relative magnitude of two selected numerical values taken from an enterprise's financial statements.
Example: "Financial ratios can be expressed as a decimal value, such as 0.10, or given as an equivalent percent value, such as 10%."
Synonyms (Exact Relations)
accounting ratioHypernyms (Closely Related)
ratio5Hyponyms (Broadly Related)
Example Sentences
"One important financial ratio that investors use to evaluate a company's performance is the price-to-earnings ratio."
"A common financial ratio used to assess a company's liquidity is the current ratio."
"The debt-to-equity ratio is a financial ratio that measures a company's leverage and risk."
"The gross profit margin is a financial ratio that indicates a company's profitability."
"The quick ratio, also known as the acid-test ratio, is a financial ratio used to measure a company's ability to pay its short-term obligations."
