The relationship between two financial variables can be expressed in:

Question

RRB Paper · Accepted Answer

Ratio analysis is an examination of financial statements conducted by preparing and evaluating a series of ratios.

The relationship between two financial variables can be expressed in:

RATE is the ratio between the two numerical facts over a period of time, for example, stock turnover is three times a year.
PURE RATIO OR PROPORTION is arrived at by the simple division of one number by another, for example, the Current Asset to Current Liability ratio is 3: 1.
PERCENTAGE is a special type of rate expressing the relationship in a hundred. It is arrived at by multiplying the quotient by 100, for example, gross profit is 30% of sales.

pure ratio