This glossary uses Visual Finance™ to bring financial terms to life. Each example shows data from the Round Number Company, a fictional business with simplified figures to make learning easier. For more details, visit 'How to Read Visual Finance'.
Ratio: Price per Share divided by Earnings Per Share (EPS). This is the number of years it will take for the investment to be paid back by Earnings (i.e. Profit) at the current rate, and thus reflects the confidence that investors feel in the company.
The above is our generic explanations of common corporate financial terminology. Actual meanings can vary widely from company to company; in order to have the correct internal definition you need to ask your Finance Department, "What do you mean by that?"
term list.