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Encyclopedia > Ratio analysis

In number and more generally in algebra, a ratio is the linear relationship between two quantities. It is expressed as two numbers separated by a colon (pronounced "to"). The ratio of 2:3 means 2 parts of one to 3 parts of the other. This means 2 fifths of the mixture is of the one and 3 fifths is of the other since there are 5 parts in total. A rate is a special kind of ratio where the two quantities being compared are of a different unit. Linear algebra lecture at Helsinki University of Technology This article is about the branch of mathematics; for other uses of the term see algebra (disambiguation). ... Quantity is a general term used to refer to any type of quantitative property or attribute, such as mass, length, or time. ... A colon (:) is a punctuation mark, visually consisting of two equally sized dots centered on the same vertical line. ... A rate is a special kind of ratio, of two measurements with different units. ...


Examples

  • A new grey colour of paint is made up by mixing 2 parts black to 8 parts of white. This ratio is 2:8 or 1:4 in its simplest form. Two eigths or one fourth of the grey paint is made up of black paint. If a larger quantity of mixture was required (say, 16 parts of white) this ratio must be kept the same for an identical grey colour to be produced. Id est, for every eight parts of white paint, two parts of black are introduced into the mixture. In a mixture with 16 parts of white paint, there would be four parts of black paint (16/8= 2, 2*2=4).

This concept produces problems like "Which is a darker grey? A 2:5 black:white mixture or a 3:7 mixture?" This page includes English translations of several Latin phrases and abbreviations such as . ...

  • If a school has a twenty-to-one student-teacher ratio, that means that there are twenty times as many students as teachers.
  • The ratio of heights of the Eiffel Tower (300 m) and the Great Pyramid (137 m) is 300:137, so one structure is more than twice the height of the other (or more specifically, 2.2 times).
  • The ratio of the mass of Jupiter to the mass of the Earth is approximately 317.8:1.
  • The musical interval of a perfect fifth, the pitch ratio 3:2, consists of two pitches, one approximately 1.5 times the frequency of another.
  • If two axles are connected by gear wheels, the number of times one axle turns for each turn of the other is known as the gear ratio. The best example being the number of turns of the pedals of a bicycle compared with number of turns of the bicycle's rear wheel.
  • The ratio of hydrogen atoms to oxygen in water is 2:1, or two parts to one.

Note the use of words such as "times", "parts", "number", etc. Because two objects are being compared using the same measure, ratios are unitless; the units cancel out of the ratio. For example, the ingredients in a recipe that required 500 grams and 300 grams of each, would be in the ratio of 5:3, with no units. The Tower at sunrise. ... The Great Pyramid of Giza, (sometimes spelled Gizeh) is the oldest and last remaining of the Seven Wonders of the World and the most famous pyramid in the world. ... Atmospheric characteristics Atmospheric pressure 70 kPa Hydrogen ~86% Helium ~14% Methane 0. ... Earth (often referred to as The Earth) is the third planet in the solar system in terms of distance from the Sun, and the fifth in order of size. ... In music theory, an interval is the relationship between two notes or pitches, the lower and higher members of the interval. ... The perfect fifth or diapente is one of three musical intervals that span five diatonic scale degrees; the others being the diminished fifth, which is one semitone smaller, and the augmented fifth, which is one semitone larger. ... Gears on a piece of farm equipment, gear ratio 1:1. ... General Name, Symbol, Number hydrogen, H, 1 Chemical series nonmetals Group, Period, Block 1, 1, s Appearance colorless Atomic mass 1. ... General Name, Symbol, Number oxygen, O, 8 Chemical series Nonmetals, chalcogens Group, Period, Block 16, 2, p Appearance colorless Atomic mass 15. ... Water (from the Old English waeter; c. ... The word unit means any of several things: Unit of measurement, a fundamental quantity of measurement Units (computer program), a popular program that does unit conversion Units of energy, the units for energy measurements Units conversion by the Factor-label method Functional unit, a component of a computer system such... An example recipe, printed from the Wikibooks Cookbook. ... The gram or gramme, symbol g, is a unit of mass. ...


Note also the difference between ratios and vulgar fractions. For example, if there are three raspberry candies and five blackcurrant candies, then the ratio of raspberry candies to blackcurrant candies is 3:5. In arithmetic, a vulgar fraction (or common fraction) consists of one integer divided by a non-zero integer. ... Binomial name Rubus idaeus L. The Raspberry or Red Raspberry, (Rubus idaeus) is a plant that produces a tart, sweet, red composite fruit in late summer or early autumn. ... Binomial name Ribes nigrum L. The blackcurrant is a temperate shrub which produces small edible berries with a high natural vitamin C content, which are very dark purple/blue in colour—almost black—hence the name. ...


This indicates that there are three fifths as many raspberry candies as blackcurrant candies. This compares the two groups of different candies as separate entities. The problem is really about a single group of candies, some of which are different. To say there are "three fifths as many raspberry candies as blackcurrant candies" is not a very lucid way of looking at the problem. A better way follows.


Three eighths of the candies are raspberry which is less than half. Five eighths are blackcurrant.


However the fraction of all the candies that are raspberry is three out of a total of all eight candies or 3/(3+5) = 3/8. Thus the chances of a randomly selected candy being raspberry are three in eight.


Ratio analysis

Ratios are values calculated by dividing one number by another. Six (6) divided by Three (3) gives a ratio of Two (2). In the business world, it is typical to use ratios to analyze the financial statements. For example, the current ratio assesses liquidity or time required for some asset to be converted to cash. The current ratio looks at current assets relative to current liabilities. Current assets should be larger than current liabilities to pay the due. One indicator or ratio for strength or stability of revenue in government is own source revenues (property taxes, for example) over total revenues (property tax and outside grants). In some respects, a high ratio suggests safety and stability. Grants or intergovernmental revenues can be taken away and heavy reliance on these outside sources, which would produce a low ratio, can spell trouble for a state or local government. In mathematics, especially in elementary arithmetic, division is an arithmetic operation which is the inverse of multiplication. ... Market liquidity is a business or economics term that refers to the ability to quickly buy or sell a particular item without causing a significant movement in the price. ... In business and accounting an asset is anything owned, whether in possession or by right to take possession, by a person or a group acting together, e. ... To meet Wikipedias quality standards, this article or section may require cleanup. ...


See also


  Results from FactBites:
 
4. Financial Ratio Analysis (1196 words)
Ratio Analysis enables the business owner/manager to spot trends in a business and to compare its performance and condition with the average performance of similar businesses in the same industry.
Ratio analysis may provide the all-important early warning indications that allow you to solve your business problems before your business is destroyed by them.
The main question this ratio addresses is: "Does your business have enough current assets to meet the payment schedule of its current debts with a margin of safety for possible losses in current assets, such as inventory shrinkage or collectable accounts?" A generally acceptable current ratio is 2 to 1.
  More results at FactBites »


 

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