ratio analysis

The analysis of *financial statements through the investigation and interpretation of *ratios. Examples of important ratios include (i) the *acid test ratio, (ii) the *current ratio, (iii) the *debt-equity ratio, (iv) the *interest coverage ratio, and (v) the *price/earnings ratio. Financial statement ratios are often assessed in comparison with sector averages.

Auditor's dictionary. 2014.

Look at other dictionaries:

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