Financial ratios, such as earnings per share, are figured by comparing two different elements of a company's financial statement. Need to understand more about financial ratios?
See this Investopedia link for a financial ratio tutorial. Financial ratios are a common means of determining a company's performance and strength by comparing that company's ratios with those of the industry overall.
From: https://libguides.umgc.edu/c.php?g=970568&p=7115107