accounting ratio

Fin
an expression of accounting results as a ratio or percentage, for example, the ratio of current assets to current liabilities

The ultimate business dictionary. 2015.

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  • accounting ratio — ➔ ratio * * * accounting ratio UK US noun [C] ACCOUNTING ► FINANCIAL RATIO(Cf. ↑financial ratio) …   Financial and business terms

  • accounting ratio — financial ratio A ratio calculated from two or more figures taken from the financial statements of a company in order to provide an indication of the financial performance and position of that company. Ratios may be expressed as a percentage (e.g …   Accounting dictionary

  • Accounting Ratio — A way of expressing the relationship between one accounting result and another, which is intended to provide a useful comparison. Accounting ratios assist in measuring the efficiency and profitability of a company based on its financial reports.… …   Investment dictionary

  • accounting ratio — financial ratio A ratio calculated from two or more figures taken from the financial statements of a company in order to provide an indication of the financial performance and position of that company. Ratios may be expressed as a percentage (e.… …   Big dictionary of business and management

  • accounting rate of return — ARR An accounting ratio that expresses the profit of an organization before interest and taxation, usually for a year, as a percentage of the capital employed at the end of the period. Variants of the measure include using profit after interest… …   Accounting dictionary

  • ratio analysis — The use of accounting ratios to evaluate a company s operating performance and financial stability. Such ratios as return on capital employed and gross profit percentage can be used to assess profitability. The liquidity ratio can be used to… …   Accounting dictionary

  • ratio covenant — A form of covenant in a loan agreement that includes conditions relating to such ratios as the gearing ratio and interest cover. Breaching such a covenant could indicate significant deterioration in the company s business or a major change in its …   Accounting dictionary

  • ratio — the proportional relationship of one thing to another * * * ratio ra‧ti‧o [ˈreɪʆiəʊ ǁ ˈreɪʆoʊ] noun [countable] a relationship between two amounts that is represented by a pair of numbers showing how much greater one amount is than the other: •… …   Financial and business terms

  • accounting rate of return — ARR An accounting ratio that expresses the profit of an organization before interest and taxation, usually for a year, as a percentage of the capital employed at the end of the period. Variants of the measure include using profit after interest… …   Big dictionary of business and management

  • Accounting liquidity — (liquidity) is a measure of the ability of a debtor to pay their debts as and when they fall due. It is usually expressed as a ratio or a percentage of current liabilities.Calculating liquidityFor a corporation with a published balance sheet… …   Wikipedia

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