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Ratio in sentence

1146 examples of Ratio in a sentence

The top 5% starts at an income of $142,000 while the bottom 20% peaks at $17,000, a ratio of 8/3, which is a big jump from the ratio of 6/3 of 30 years ago.
In Europe, the concern today is instead with the debt/GDP ratio.
The worry here is that the GDP drop resulting from “austerity” might be so large that the debt ratio increases.
This matters, because investors often use the debt ratio as an indicator of financial sustainability.
However, a lower deficit must lead over time to a lower debt ratio, even if this ratio worsens in the short run.
This implies that whatever short-run negative impact lower demand may have on the debt ratio should be offset later (in the medium to long run) by the rebound in demand that brings the economy back to its previous output level.
But, even without any confidence effects, the bipartisan Congressional Budget Office has concluded that, while cutting the US deficit does lower demand, it still leads reliably to a lower debt ratio.
The decisive question then becomes: What matters more, the impact of deficit cutting on the debt/GDP ratio in the short run or in the long run?
Of course, some market participants might not be rational, demanding a higher risk premium following a short-term deterioration of the debt ratio.
But those concentrating on the short term risk losing money, because the risk premium will eventually decline when the debt ratio turns around.
Whereas more than 80% of the value of the Standard & Poor’s 500 consisted of tangible assets 40 years ago, today that ratio is reversed: more than 80% of the largest companies’ value is intangible – the knowledge and skills of their employees and the intellectual property embedded in their products.
And despite the post-crisis debt expansion, the ratio of investment-to-GDP has been falling in the advanced economies and plateauing in most developing countries.
During the financial crisis, the ratio in the UK was around 180%, and it had been well over 100% for some time.
As a result, its economy would grow, and its debt ratio would fall.
Though the country has made significant progress on this front since 2008, its total trade-to-GDP ratio (37%) and export-to-GDP ratio (18%) remain significantly higher than those of the US, Japan, and other large economies.
This process can be visualized as a champagne coupe, with a broad, shallow bowl mounted on a long, thin stem: an ever-slimmer base of young people supports an ever-increasing number of senior citizens, placing social-security systems under growing strain as the ratio of pensioners to the working-age population rises.
The US currently collects the lowest ratio of taxes to national income among rich nations.
Greece’s debt ratio is over 120%, Italy’s is around 100%, and the US is at 74%, up from 40% a few years ago – and rapidly approaching 90%.
The International Monetary Fund estimates that each 10-point increase in the debt ratio lowers economic growth by 0.2 percentage points.
Measured as the ratio of the government’s fiscal revenue to GDP, China’s overall tax burden, according to the International Monetary Fund’s Government Finance Statistics Manual, is just over 29%.
Another way to measure the overall tax burden is to calculate the ratio of tax revenue and social security contributions to GDP.
In short, with low enough interest rates, any debt-to-GDP ratio is manageable.
Third, while ECB policies keep borrowing costs lower, private and public debt in the periphery countries, as a share of GDP, is high and still rising, because the denominator of the debt ratio – nominal GDP – is barely increasing.
Austerity, it was argued, was needed to stem the rise in the debt ratio and safeguard long-term growth.
Even with the latest deal, Greece’s debt ratio remains at 120% of last year’s GDP.
With a projected drop in GDP of 7% this year and a sustained deficit, the debt ratio would exceed 130% before stabilizing at 120% in 2020.
To reduce the debt-to-GDP ratio to 70%, Greece would have to maintain an average primary surplus of 4% for the next 30 years, a level that it has temporarily achieved in only four of the last 25 years.
Had Greece defaulted on its debt in 2010, imposing the same “haircut” on private creditors as it has imposed now, it would have reduced the debt-to-GDP ratio to a more manageable 80%.
More significant, over the last year, the public debt/GDP ratio rose by seven percentage points in Italy, 11 in Ireland, and 15 in Portugal and Spain.
They argue that, given record-low borrowing costs of about 1%, increased capital spending by governments would effectively amount to the proverbial “free lunch,” yielding sufficiently high tax revenues that the debt/GDP ratio would not rise.
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