What is a ratio?

A ratio is an accounting or financial unit of measurement and comparison, by means of which we can analyse the current or past state of a company.

That is, it is a number that by itself does not say much, but compared to previous ones it allows us to determine the results of a company to know if it is growing or not.

We will use as an example the Reuters website (search it as www.reuters.com) but you can also find out this information in any financial portal. To access this information we do the following

Rrading Ratio accounting

1) Go to the Reuters website, enter the company you want to analyse in the search engine and press ENTER (for this example we will use Mercado Libre, whose ticker is MELI).
ratios 1
2) Click on the name, as highlighted in the image below:
ratios 2
3) Then go to the section that says FINANCIALS.
ratios 3
Below we will look at some of them.