Berry Ratio.pdf

12/10/2017

Berry Ratio

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What is the 'Berry Ratio'

The Berry ratio is the ratio of a company's gross profits to operating expenses. This ratio is used as an indicator of a company's profits in a given period of time. A ratio coe icient of 1 or more indicates that the company is making profit above all variable expenses, whereas a coe icient below 1 indicates that the firm is losing money. The formula is as follows:

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BREAKING DOWN 'Berry Ratio' This ratio attempts to measure a firm's profitability. A higher coe icient means that the firm is more profitable, while a lower coe icient means the firm in not as profitable. Using this method in conjunction with other profit-level indicators will ensure a higher level of validity.

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Berry Ratio

NEXT UP: PEARSON COEFFICIENT Berry Ratio

A type of correlation coe icient that represents the relationship between two variables that are measured on the same interval or ratio scale.

Pearson Coefficient

BREAKING DOWN 'Pearson Coe icient'

Numerically, the Pearson coe icient is represented the same way as a correlation coe icient that is Coefficient of Determination used in linear regression; ranging from -1 to +1. A value of +1 is the result of a perfect positive relationship between two or more variables. Conversely, a value of -1 represents a perfect negative Information Coefficient - IC relationship. It has been shown that the Pearson coe icient can be deceptively small when it is used with a non-linear equation. Coefficient Of Variation - CV

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Current Ratio

Accounting Ratio

Excess Kurtosis

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