How do we use ratios and of what value is it? How would I figure out equal ratios? Give examples. Thanks

Solution Preview

How do we use ratios?

We use ratios to make comparisons between two things. When we express ratios in words, we use the word "to" -- we say "the ratio of something to something else" -- for example, the ratio of squares to triangles in the illustration below. Ratios can be written in several different ways.

Multiplying or dividing each term by the same nonzero number will give an equal ratio. For example, the ratio 2:4 is equal to the ratio 1:2. To tell if two ratios are equal, use a calculator and divide. If the division gives the same answer for both ratios, then they are

We use ratios to make comparisons between two things. When we express ratios in words, we use the word "to"--we say "the ratio of something to something else." Ratios can be written in several different ways: as a fraction, using the word "to", or with a colon.

Example: We have 6 circles and ...

Solution Summary

This solution examines how we use ratios and of what value it is. It describes how to figure out equal ratios. Examples are provided.

... (a) Contribution margin Ratio = Contribution/Sales. ... Break even point Contribution is just equal to Fixed ... or performance at which total cost equals total revenue ...

Ratio , Proportion and Measurement. Solve The Following Problems. 1. Given that 1 acre equals 43,560 square feet, a rectangular area 1230 feel long by 675 feet ...

... This solution is comprised of a detailed explanation of financial ratios, how they are used and how they ... If Current Ratio , calculated: is equal to 6 ...

... Gain on Sale of Tractor" equal to $6,000 on the NET INCOME page of the journal. Detailed decription of how to calculate fixed-asset turnover ratio and capital ...

... Value of the annuity should be equal to the ... solution has various problems relating to ratio calculations - ROI ... COMPUTE THE MARGIN AND TURNOVER RATIOS FOR EACH ...

... value per share of common stock ratio equals preferred equity ... Company G's price earnings ratio resides at 5.03 ... be validated when used with other ratios and in ...

... value of equity is by definition equal to the ... plus equity) and the debt to equity ratio, (total liabilities ... learn from comparing each of these ratios when they ...

... you use an F-ratio when you could have also used a t-statistic (comparing two groups, in a linear regression analysis, etc.), the F-ratio will be equal to the t ...

... common ratios are gross margin, operating margin and net income margin. The gross margin is the ratio of gross profits to sales. The gross profit is equal to ...