Result of one number or quantity divided by another. Ratios are the simplest mathematical (statistical) tools that reveal significant relationships hidden in mass of data, and allow meaningful comparisons. Some ratios are expressed as fractions or decimals, and some as percentages. Major types of business ratios include (1) Efficiency, (2) Liquidity, (3) Profitability, and (4) Solvency ratios.

Use ratio in a sentence

  • The ratio for cooking rice is one cup of rice to two cups or water, but for cooking many kinds of beans it is one cup of beans to two and a half cups of water.

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  • Many films have their visual ratio adjusted when released on blu ray, allowing for more optimal viewing for the consumer at home.

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  • The ratio of cake to children at the party was perfect, every child was sure to have a piece for themselves.

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