The increased return on assets in 2011 reflects the increased sales reduced costs and much higher net income for that year. Ratios and Proportions A ratio is fundamentally a fraction or two numbers expressed as a quotient such as 34 or 1792385. Working capital represents a companys ability to pay its current liabilities with its current.
The ratio can be simpler again if we divide by 3.
The ratio of 4 to 8 to 12 is the continued ratio 4812 We get the continued ratio above by combining 3 ratios. A ratio can be written in three different ways and. 6 3 2 9. The first number goes on top of the fraction and the second.