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Definition of Ratio

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Definition of Ratio
Definition of Ratio

Definition of Ratio:

A ratio is a comparison in terms of relationship of two numbers or two things;
On the other hand
A “Ratio” is just a comparison between two different things, which denotes the comparative capacity or strength of each thing.

Ratio analysis

In the context of Organization, Ratio analysis examines performance and overall profitability (Financial capacity) of an Organization.
Or on the other hand,
it evaluates the financial strength or weakness of an organization and its operating trend.

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