How to Calculate Ratio Analysis
Ratios are primarily used as a way to quantify a comparison between two different items. In words, a ratio is represented by the word "to" or "compared to." They can be written as fractions, using the word "to," or with a colon. They can also be expressed as a percentage: 3 to 6, 3/6, 3:6 all mean the same thing in ratio analysis.
- Difficulty:
- Moderately Easy
Instructions
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The Steps
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1
Review an example. The best way to understand how to calculate a ratio for analysis is to work through an example. Let's say we have a group of shapes consisting of both circles and squares. In our grouping, we have three squares and six circles. What is the best way to express this grouping as a ratio?
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2
Express the ratio using the word "to." Expressed in words, using the word "to," this grouping is represented by saying "3 to 6" or "the number of squares" to "the number of circles." If you add the two numbers together, it should equal the total number of shapes in the group.
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3
Calculate the ratio as a fraction. Expressed as a fraction, our grouping of shapes is 3/6. This is the "number of squares" divided by "the number of circles." This is the most common way ratios are expressed.
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4
Express the ratio using a colon. Another way to show a ratio between two different items is to use a colon. This is expressed as 3:6 or "the number of squares": "the number of circles."
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5
Pay attention to order. In our example, "the ratio of squares to circles," squares came first. This order is very important and must be noted. Whatever word or item is compared first, must also come first in the ratio.
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1
Tips & Warnings
When you calculate a ratio, the two items being compared must have the same units. If they don't, you will need to "convert" one of the items being compared to the units of the other by using a conversion factor. See Resources for more information on conversion factors.
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