when a number of ratios give the same answer after solving the ratios the ratios are said to be equivalent ratios
1 - Activity Ratios 2 - Liquidity ratios 3 - Profitability ratios
1 - Activity ratios 2 - Profitability ratios 3 - Liquidity ratios
No but percentages are ratios.
No but the equal ratios are called Equivalent Ratios.
Relationships
Ratios are useful because they give people a mental image of important numbers. The ratios can be used for a variety of purposes such as to break down expenses, examine a diet, look at physical activity, or watch shopping habits.
Yes, comparing a company's financial ratios to some form of standard is useful in interpreting the ratios. It allows for benchmarking and provides context to understand whether the company's performance is above or below industry averages or competitor benchmarks. This comparison helps to identify strengths and weaknesses, and evaluate the company's financial health and performance.
Ratios are useful for comparing amounts or quantities because they provide a simplified way to express the relationship between two values. By dividing one value by another, ratios can help determine the relative size or proportion of different entities or quantities.
Ratios and percentages are also useful in many situations in daily life, such .... (also called ratio tables), they should practice using and understand- ing ratio.
debt to equity ratio
when a number of ratios give the same answer after solving the ratios the ratios are said to be equivalent ratios
Ratios are often classified using the following terms: profitability ratios (also known as operating ratios), liquidity ratios, and solvency ratios.
Ratios
1 - Activity Ratios 2 - Liquidity ratios 3 - Profitability ratios
1 - Activity ratios 2 - Profitability ratios 3 - Liquidity ratios
equivalent ratios are different ratios that name the same comparison