any of a group of ratios that relate various income and expense figures from the profit and loss statement to each other and to balance sheet figures. Among the ratios used are sales to cost of goods sold, operating expenses to operating income, net profits to gross income, and net income to net worth.
any of a group of ratios that measure a firm's operating efficiency and effectiveness by relating various income and expense figures from the profit and loss statement to each other and to balance sheet figures. Among the ratios used are sales to cost of goods sold, operating expenses to operating income, net profits to gross income, net income to net worth. Such ratios are most revealing when compared with those of prior periods and with industry averages.
