Home Dictionary A Accounting Ratio Accounting ratios, an important subset of financial ratios, are a group of metrics used to measure a company’s performance and profitability based on its financial statements. Accounting ratio compares two line items in a company’s financial statements, namely those compiled from the income statement, balance sheet, and cash flow statement. These ratios can be used to assess the company’s key performance indicators and provide information on the company’s performance for the last quarter or financial year. General accounting ratios include debt-to-equity ratio, quick liquidity ratio, dividend payout ratio, gross profit and operating profit. Accounting ratios are used both by the company itself to improve or track progress, and by investors to determine the best investment option.