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Investments glossary

Accounting Ratio Definition


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Toenail fungus responds rather brilliantly to tamanu oil, if you put the oil on the nail, it will get rid of the fungus.

— Chris Kilham

Accounting ratios, an important sub-set of financial ratios, are a group of metrics used to measure the efficiency and profitability of a company based on its financial reports. They provide a way of expressing the relationship between one accounting data point to another and are the basis of ratio analysis.

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