financial ratios




Mathematical ratios developed from a corporation's financial statements that are used to analyze its financial strength and stability by institutions making credit or investment decisions. Making these calculations and evaluating the results is often called ratio analysis or fundamental analysis.

See: asset composition ratio, common equity ratio , current ratio, debt-to-assets ratio, debt-to-equity ratio, earnings per share, earnings yield, financial statement, financial underwriting, net worth ratio, operating ratio, price earnings ratio, quick ratio, return on investment

from Rupp's Insurance & Risk Management Glossary. © 2002, NILS Publishing. All rights reserved.