Definitions
There is 1 meaning of the phrase
Ratio Analysis.
Ratio Analysis - as a noun
Single most important technique of financial analysis in which quantities are converted into ratios for meaningful comparisons, with past ratios and ratios of other firms in the same or different industries.
Example: "When a financial advisor talks to you about your car and house payments in comparison to your alcohol purchases, he or she may use a ratio analysis in order to provide a better example."
Example Sentences
"One of the commonly used ratios in ratio analysis is the current ratio, which measures a company's ability to pay its short-term debts."
"A low debt-to-equity ratio can be a positive sign when conducting ratio analysis."
"Investors use ratio analysis to assess a company's efficiency through analyzing its inventory turnover ratio."
"Financial analysts use ratio analysis to identify trends and potential issues in a company's financial statements."
"Investors often rely on ratio analysis to make informed decisions about where to allocate their funds."
