What is ratio in SAP FI-LC - Consolidation?

SAP Term: ratio

• Component: FI-LC

• Component Name: Consolidation

• Description: A tool to help analyze a corporation or a group. A ratio is a financial statement item defined by a formula that can be used to add, subtract, multiply and divide other financial statement items and constants. Ratios can be used to show the relationships between different item values so that varying aspects of the company or group can be displayed. For example, owner equity ratio = equity:equity + liabilities.

Smart SAP Assistant

• Key Concepts: 
  Ratio is a term used in the FI-LC Consolidation component of SAP. It is a numerical value that is used to compare two or more values in order to determine the relative size of each. Ratios are often used to measure the performance of a company or to compare different companies. 
  
  How to use it: 
  In SAP, ratios are used to measure the performance of a company or to compare different companies. Ratios can be used to measure profitability, liquidity, efficiency, and other financial metrics. Ratios can also be used to compare different companies in terms of their financial performance. 
  
  Tips & Tricks: 
  When using ratios in SAP, it is important to remember that ratios are only useful when comparing similar companies or entities. Ratios should not be used to compare companies that are in different industries or have different business models. Additionally, it is important to remember that ratios should not be used as a substitute for actual financial data. 
  
  Related Information: 
  For more information on ratios and how they are used in SAP, please refer to the official SAP documentation on the topic. Additionally, there are many online resources available that provide detailed explanations and examples of how ratios can be used in SAP.