Similar of accounting ratio is a relative magnitude of two selected.
Financial ratios are relationships determined from a company’s financial-information and used for comparison purposes.
Examples include such often referred to definition is measures as return on investment (ROI), return on assets (ROA), and debt-to-equity.
Financial-ratios are the ratios that are used to analyze the financial statements of the company to evaluate performance where it applied according to the results required.
A financial-ratio can be well defined as a comparative magnitude of two selected statistical values taken from the financial statements.
It is also called financial leverage-ratios, solvency ratios compare a company’s debt levels with its assets and equity.
Financial-ratios or accounting ratios measure a company’s financial situation or performance against other firms.