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------------------- is the type of ratio ratios give or bring out comparative facts

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------------------- is the type of ratio ratios give or bring out comparative facts

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Solution

The type of ratio you are referring to is known as a Comparative Ratio. Comparative ratios are used to analyze and compare different datasets or financial statements to derive insights about performance, efficiency, and other metrics. They help in highlighting relationships and proportions among various entities, enabling stakeholders to make informed decisions.

For example, in financial analysis, you might look at ratios like the debt-to-equity ratio, which compares a company's total liabilities to its shareholder equity. This ratio provides insights into the financial leverage of the company. Similarly, the current ratio, which compares current assets to current liabilities, gives a perspective on the company's short-term liquidity.

In summary, comparative ratios serve as essential tools for evaluation and decision-making by allowing the comparison of different aspects of performance or conditions.

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