Profit margin and asset turnover
It is a compound.
The two components of return are income and capital appreciation. Income includes dividends, interest payments, and rental income generated by an investment. Capital appreciation refers to the increase in the value of an investment over time.
Analyzing numerical data using ratios involves comparing two or more quantities to understand relationships and performance. Ratios, such as profit margins, return on investment, or debt-to-equity, provide insights into efficiency, profitability, and financial stability. They allow for easier comparisons across time periods, industries, or companies, helping identify trends and outliers. Ultimately, ratios simplify complex data, enabling informed decision-making and strategic planning.
The two main parameters are: * Returns - Amount of returns we can expect on the investment * Safety/Risk - How risky the investment is. Generally risk and returns are directly proportional. Higher the risk on investment, higher would be the return on investment.
When two ratios form a proportion, the ratios are equal
Two ratios that are equivalent are said to be in proportion
When the cross-products of the two ratios are equal.
Two ratios are the equivalent when their simplified forms are identical.
When they are equivalent ratios.
Equivalent Ratios
They are equivalent ratios
what are two equivlent ratios for 2:11