Search results
Results from the WOW.Com Content Network
The solvency ratio of an insurance company is the size of its capital relative to all risks it has taken. The solvency ratio is most often defined as: The solvency ratio is most often defined as: n e t . a s s e t s ÷ n e t . p r e m i u m . w r i t t e n {\displaystyle net.assets\div net.premium.written}
where s x 2 and s y 2 are the variances of the x and y variates respectively, m x and m y are the means of the x and y variates respectively and s xy is the covariance of x and y. Although the approximate variance estimator of the ratio given below is biased, if the sample size is large, the bias in this estimator is negligible.
A ratio distribution (also known as a quotient distribution) is a probability distribution constructed as the distribution of the ratio of random variables having two other known distributions. Given two (usually independent) random variables X and Y, the distribution of the random variable Z that is formed as the ratio Z = X/Y is a ratio ...
For example, a ratio of 3:2 is the same as 12:8. It is usual either to reduce terms to the lowest common denominator, or to express them in parts per hundred . If a mixture contains substances A, B, C and D in the ratio 5:9:4:2 then there are 5 parts of A for every 9 parts of B, 4 parts of C and 2 parts of D.
The debt service coverage ratio (DSCR), also known as "debt coverage ratio" (DCR), is a financial metric used to assess an entity's ability to generate enough cash to cover its debt service obligations, such as interest, principal, and lease payments. The DSCR is calculated by dividing the operating income by the total amount of debt service due.
A financial ratio or accounting ratio states the relative magnitude of two selected numerical values taken from an enterprise's financial statements. Often used in accounting , there are many standard ratios used to try to evaluate the overall financial condition of a corporation or other organization.
The Rachev ratio can be used in both ex-ante and ex-post analyses.. The 5% ETL and 5% ETR of a non-Gaussian return distribution. Although the most probable return is positive, the Rachev ratio is 0.7 < 1, which means that the excess loss is not balanced by the excess profit in the investment.
The information ratio is often annualized. While it is then common for the numerator to be calculated as the arithmetic difference between the annualized portfolio return and the annualized benchmark return, this is an approximation because the annualization of an arithmetic difference between terms is not the arithmetic difference of the annualized terms. [6]