financial ratio
- noun
- Specialized
:
ratio financiero
- Table 1 provides examples of financial ratios used to measure liquidity, profitability, and leverage.
- financial ratio analysis
- important financial ratios
- use of financial ratios
Examples
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Financial ratio analysis typically considers four broad aspects of the organization: liquidity, profitability, leverage, and operations.
Academic text (2011) -
Investors often analyze the financial ratio between debt and equity to assess a firm's risk level.
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Public health schools and programs should develop and offer financial management courses, including financial ratio analysis, to their students.
Academic text (2011) -
You have to meet certain financial ratios, you know, or to keep your credit right.
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The mutual benefits of financial ratio analysis will grow as the methodology is employed by more managers in the public health sector.
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LPHA staff with financial responsibilities should receive training in the use of financial ratio analysis.
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LPHAs may achieve more of a community impact if they employ financial ratio analysis to monitor performance, increase capacity, and achieve their mission and vision.
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Moreover, when used systematically, financial ratio analysis allows organizations to make projections about their operations, providing valuable insight into their future.
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Monitoring financial performance and predicting financial problems are important contributions of financial ratio analysis and have been demonstrated to help hospitals and local governments reduce costs, increase profits, and continue operations.
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At present, analytical review procedures are mainly focused on financial ratios, which are analyzed cross-sectionally and over time.
Academic text (1999)
Synonyms
240
2.8
A relationship between two numbers showing how many times one is in the other
A number that compares two amounts in a company's accounts to show performance
Surface Forms
Morphology
The meaning 'a numerical comparison between two financial values' is directly and transparently derived from combining 'financial' (relating to money and its management) with 'ratio' (a numeric relation between quantities). This simple adjective+noun composition follows regular compositional semantics and is cross-linguistically common, so a B1 learner who knows both constituents should readily understand the MWE.
Etymology
Financial ratio comes from a simple image: imagine a scale or a fraction that compares two piles of money — ratio means 'compare' and financial means 'about money'. So a financial ratio is a number made by dividing one money figure by another to judge a company's 'financial health' or performance.