RATIO

comparing one financial figure with another; there are 3 main groups of ratios: 1.Performance ratios, Return on Capital Employed (ROCE), Profit margin on sales, and Asset turnover. 2.Financial status ratios, Current ratio, Acid test (quick) ratio, Debt/equity, Interest cover. 3.Stock market ratios, Earnings per share (EPS), Price Earnings ratio (P/E ratio), Dividend yield, Dividend cover.