ACCOUNTING RATIO
(noun)Definitions
There is 1 meaning of the phrase
Accounting Ratio.
Accounting 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)
financial ratioHypernyms (Closely Related)
ratioHyponyms (Broadly Related)
Example Sentences
"One commonly used accounting ratio is the current ratio, which measures a company's short-term liquidity."
"Profit margin is an accounting ratio that indicates the percentage of profit a company earns from its sales."
"The debt-to-equity ratio is an accounting ratio that compares a company's debt to its equity."
"Return on investment (ROI) is an accounting ratio that measures the profitability of an investment."
"Earnings per share (EPS) is an accounting ratio used to calculate the portion of a company's profit allocated to each outstanding share of common stock."
