Financial Ratio
/ˈfaɪnænʃəl ˈreɪʃi.oʊ/
Definitions
- (n.) A numerical value derived from financial statement data used to evaluate a company's financial health and performance.
The debt-to-equity ratio is a common financial ratio used to assess leverage.
Forms
- financial ratio
- financial ratios
Related terms
See also
Commentary
Financial ratios are critical in legal contexts involving financial analysis, such as in bankruptcy proceedings or corporate due diligence, where precise interpretation of these ratios can affect legal outcomes.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.