The value of one item relative to another.

Commonly taking the form of a fraction or percentage, this is a way to express the value of one item in terms of another. If the items are represented by a and b, a ratio may also take the form a:b. In all forms the order of the two items is important. Ratios may also relate a portion of something to the whole.

Ratios are used to relate financial statement components to each other as well as evaluate a company's financial strength, operating results, and growth prospects as a whole. In foreign currency trading, an exchange rate is the ratio of the value of one currency to another.