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A financial ratio or accounting ratio states the relative magnitude of two selected numerical values taken from an enterprise's financial statements. Often used in accounting , there are many standard ratios used to try to evaluate the overall financial condition of a corporation or other organization.
In econometrics, the equations of a structural form model are estimated in their theoretically given form, while an alternative approach to estimation is to first solve the theoretical equations for the endogenous variables to obtain reduced form equations, and then to estimate the reduced form equations.
Data compression ratio, also known as compression power, is a measurement of the relative reduction in size of data representation produced by a data compression algorithm. It is typically expressed as the division of uncompressed size by compressed size.
A ratio that has integers for both quantities and that cannot be reduced any further (using integers) is said to be in simplest form or lowest terms. Sometimes it is useful to write a ratio in the form 1:x or x:1, where x is not necessarily an integer, to enable comparisons of different ratios. For example, the ratio 4:5 can be written as 1:1 ...
In the first step both numbers were divided by 10, which is a factor common to both 120 and 90. In the second step, they were divided by 3. The final result, 4 / 3 , is an irreducible fraction because 4 and 3 have no common factors other than 1.
Two functions and () are proportional if their ratio () is a constant function. If several pairs of variables share the same direct proportionality constant, the equation expressing the equality of these ratios is called a proportion , e.g., a / b = x / y = ⋯ = k (for details see Ratio ).