types of ratio and ratio proportion
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The ratio is used for comparing two quantities of the same kind. The ratio formula for two numbers says a and b is given by a : b or a/b. When two or more such ratios are equal, they are said to be in proportion.
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A ratio is read as the ratio of x to y but can be written or in three different forms:
x to y.
x : y.
x/y.
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Ratio analysis consists of calculating financial performance using five basic types of ratios: profitability, liquidity, activity, debt, and market.
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