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Ratio
An expression of the mathematical relationship between one quantity and another. The relationship may be expressed either as a percentage, a rate, or a simple proportion.
Horizontal Analysis
A financial analysis technique that evaluates changes in financial statement items over a series of accounting periods, showcasing trends and growth patterns.
Times Interest Earned
Measures a company’s ability to meet interest payments as they come due; computed by dividing the sum of net income, interest expense, and income tax expense by interest expense.
Income Statement
Financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and net income or loss.
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