IDEAS home Printed from https://ideas.repec.org/h/spr/sptchp/978-3-031-88892-2_9.html
   My bibliography  Save this book chapter

The Geometry of Financial Ratios

In: The Geometry of Accounting

Author

Listed:
  • Byung T. Ro

    (Purdue University)

Abstract

This chapter examines financial ratios in geometric settings. Financial ratios do not differ much from ratios in general, except that they are generated with financial numbers. Although generating and presenting financial ratios is not a task of accounting, this chapter examines the subject since the financial numbers used to generate them come from accounting. These financial numbers are the level 2 or level 3 aggregates of accounting measures discussed in Chap. 8 . A relevant geometric setting for examining financial ratios is a two-dimensional Cartesian space since every financial ratio is defined by a pair of financial numbers—one for its dividend (numerator) and one for its divisor (denominator). The financial ratios examined in this chapter are those called accounting ratios, defined only with financial numbers from accounting. The so-called market-based financial ratios such as the price-to-earnings (P/E) ratio and the price-to-book value (P/B) ratio are not discussed since not all the numbers used to generate them come from accounting.

Suggested Citation

  • Byung T. Ro, 2025. "The Geometry of Financial Ratios," Springer Texts in Business and Economics, in: The Geometry of Accounting, chapter 9, pages 201-222, Springer.
    • Handle: RePEc:spr:sptchp:978-3-031-88892-2_9
    DOI: 10.1007/978-3-031-88892-2_9
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sptchp:978-3-031-88892-2_9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.