Ratio as variable
Posted: Thu Apr 05, 2012 2:09 pm
Hi,
When you generate a variable which is a ratio in Eviews, do you always have to multiply it with 100?
This in order to interpret your ratio's in %?
- Or is this dependent on the type of ratio that you are using.
For example: Profit margin = netprofit/turnover *100, leverage ratio= short term liabilities/total assets also *100?
Thanks in advance,
Mathias
When you generate a variable which is a ratio in Eviews, do you always have to multiply it with 100?
This in order to interpret your ratio's in %?
- Or is this dependent on the type of ratio that you are using.
For example: Profit margin = netprofit/turnover *100, leverage ratio= short term liabilities/total assets also *100?
Thanks in advance,
Mathias