Ratio Analysis
A tool used by individuals to conduct a quantitative analysis of information in a company's financial statements. Ratios are calculated from current year numbers and are then compared to previous years, other companies, the industry, or even the economy to judge the performance of the company. Ratio analysis is predominately used by proponents of fundamental analysis.

Investopedia Says:
There are many ratios that can be calculated from the financial statements pertaining to a company's performance, activity, financing and liquidity. Some common ratios include the price-earnings ratio, debt-equity ratio, earnings per share, asset turnover and working capital.

Related Terms:
Asset Turnover
Earnings Per Share - EPS
Fundamental Analysis
Man-Year
Price-Earnings Ratio - P/E Ratio
Quantitative Analysis
Working Capital
Working Capital Management

• Trading Range
• Trading Session
• Traditional Whole Life Policy
• Trailer Fee
• Trailing
• Trailing EPS
• Trailing Price-To-Earnings (Trailing P/E)
• Trailing Stop
• Trailing Twelve Months (TTM)
• Trailing Twelve Months (TTM)
• Tranches
• Transaction
• Transaction Costs
• Transaction Exposure
• Transaction Risk
• Transfer
• Transfer Agent
• Transfer Of Risk
• Transfer On Death (TOD)
• Transfer On Death (TOD)
• Transfer Payment
• Transfer Price
• Transfer Procedures
• Translation Exposure
• Translation Risk