12/10/2017 Berry Ratio

Berry Ratio
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What is the 'Berry Ratio'

The Berry ratio is the ratio of a company's gross profits to operating expenses. This ratio is used as an
indicator of a company's profits in a given period of time. A ratio coe icient of 1 or more indicates
that the company is making profit above all variable expenses, whereas a coe icient below 1
indicates that the firm is losing money.

The formula is as follows:

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BREAKING DOWN 'Berry Ratio'

This ratio attempts to measure a firm's profitability. A higher coe icient means that the firm is more
profitable, while a lower coe icient means the firm in not as profitable. Using this method in
conjunction with other profit-level indicators will ensure a higher level of validity.

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Pearson Coe icient

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12/10/2017 Berry Ratio

NEXT UP: PEARSON COEFFICIENT

Berry Ratio
A type of correlation coe icient that represents the relationship between two variables that are
measured on the same interval or ratio scale.
Pearson Coefficient

BREAKING DOWN 'Pearson Coe icient'

Numerically,
Coefficient the Pearson coe icient is represented the same way as a correlation coe icient that is
of Determination
used in linear regression; ranging from -1 to +1. A value of +1 is the result of a perfect positive
relationship between two or more variables. Conversely, a value of -1 represents a perfect negative
Information Coefficient - IC
relationship. It has been shown that the Pearson coe icient can be deceptively small when it is used
with a non-linear equation.
Coefficient Of Variation - CV
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Combined Ratio
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Coefficient

Current Ratio

Accounting Ratio

Excess Kurtosis

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