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The current ratio is an indication of a firm's accounting liquidity. Acceptable current ratios vary across industries. [1] Generally, high current ratio are regarded as better than low current ratios, as an indication of whether a company can pay a creditor back. However, if a company's current ratio is too high, it may indicate that the ...
The index can also be charted over time and used as a kind of technical analysis indicator, to show stocks going into ulcer-forming territory (for one's chosen time-frame), or to compare volatility in different stocks. [4] As with the Sharpe Ratio, a higher value of UPI is better than a lower value (investors prefer more return for less risk).
The Marshall-Edgeworth index, credited to Marshall (1887) and Edgeworth (1925), [11] is a weighted relative of current period to base period sets of prices. This index uses the arithmetic average of the current and based period quantities for weighting. It is considered a pseudo-superlative formula and is symmetric. [12]
Index (statistics) In statistics and research design, an index is a composite statistic – a measure of changes in a representative group of individual data points, or in other words, a compound measure that aggregates multiple indicators. [1][2] Indices – also known as indexes and composite indicators – summarize and rank specific ...
The Buffett indicator (or the Buffett metric, or the Market capitalization-to-GDP ratio) [1] is a valuation multiple used to assess how expensive or cheap the aggregate stock market is at a given point in time. [1][2] It was proposed as a metric by investor Warren Buffett in 2001, who called it "probably the best single measure of where ...
In statistics and applications of statistics, normalization can have a range of meanings. [1] In the simplest cases, normalization of ratings means adjusting values measured on different scales to a notionally common scale, often prior to averaging. In more complicated cases, normalization may refer to more sophisticated adjustments where the ...
Development. Misconduct. v. t. e. In accounting, liquidity (or accounting liquidity) is a measure of the ability of a debtor to pay their debts as and when they fall due. It is usually expressed as a ratio or a percentage of current liabilities. Liquidity is the ability to pay short-term obligations.
New research points to a better way to measure obesity than body mass index. Body mass index was first developed in 1832 and has been the standard way to estimate a person’s body fat since the ...