There are several ratios that do not have a “full description” showing how they are calculated, such as this one.
Which means you don’t know if a high value or low value is better.
In such a cases, is it safe to assume the first part of the ratio is always the numerator and the last part is always the denominator?
So in this case it would be: Debt / Net Income
I think that’s your role as an investor to figure it out more than P123. The full descriptions are there to help users on how to use the rankings. For some factors many times there is no clear cut answer on how you should formulate the hypothesis. It’s up to you to test and discover.
I am not asking how I should use it. I am asking how it is calculated. By definition a ratio has a numerator / denominator.
I want to know how this ratio is calculated, all all ratios like it not documented.
Tony - when you have a factor such as AAA2BBB, it means AAA to BBB, or AAA/BBB, and AAA is the numerator.
Perfect. Thank you.
