dependency ratio

Examples of dependency ratio in the following topics:

• Relative Amounts of Acid and Base

  • The pH of a buffer depends on the ratio [base]/[acid] rather than on the particular concentration of a specific solution.
  • The pH of a buffer depends on the ratio [base]/[acid] rather than on the particular concentration of a specific solution.
  • Therefore, you need only to adjust the ratio of [C2H3O2-]/[HC2H3O2] to get the desired final hydrogen ion concentration.
  • To satisfy the expression, the ratio of [C2H3O2-]/[HC2H3O2] must be 0.36 to 1.
  • The more the ratio needs to differ to achieve the desired pH, the less effective the buffer.

• Setting the Target Payout Ratio

  • The Target Payout Ratio, or Dividend Payout Ratio, is the fraction of net income a firm pays to its stockholders in dividends.
  • However investors seeking capital growth may prefer lower payout ratios.
  • The Target Payout Ratio depends on what investors the management of a company are trying to attract, and what current investors' expectations are.
  • It also depends on the growth goals of the company.
  • High growth firms in early life generally have low or zero payout ratios.

• Geometric Sequences

  • For example, the sequence $2, 6, 18, 54, \cdots$ is a geometric progression with common ratio $3$.
  • Similarly $10,5,2.5,1.25,\cdots$ is a geometric sequence with common ratio $\frac{1}{2}$.
  • For instance: $1,-3,9,-27,81,-243, \cdots$ is a geometric sequence with common ratio $-3$.
  • The behavior of a geometric sequence depends on the value of the common ratio.
  • Calculate the $n$th term of a geometric sequence given the initial value $a$ and common ratio $r$

• Selected Financial Ratios and Analyses

  • Changes in financial ratios can impact a public company's stock price, depending on the effect the change has on the business.
  • A publicly traded company's stock price can also be a variable used in the computation of certain ratios, such as the price/earnings ratio.
  • The following are some examples of financial ratios that are used to analyze a company.
  • This ratio indicates the proportion of income that has been realized in cash.
  • As with quality of sales, high levels for this ratio are desirable.

• Price/Earnings Ratio

  • The P/E ratio is a widely used valuation multiple used as a guide to the relative values of companies; a higher P/E ratio means that investors are paying more for each unit of current net income, so the stock is more "expensive" than one with a lower P/E ratio.
  • The P/E ratio can be regarded as being expressed in years.
  • P/E ratio = Market price per share / Annual earnings per share
  • The earnings per share in the denominator may vary depending on the type of P/E.
  • The P/E ratio of a company is a significant focus for management in many companies and industries.

• Profitability Ratios

  • Profitability ratios are used to assess a business's ability to generate earnings.
  • Other profitability ratios include:
  • The return on assets gives an indication of the company's capital intensity, which will depend on the industry.
  • The profit margin ratio is broadly the ratio of profit to total sales times one hundred percent.
  • Basic Earning Power Ratio: The basic earning power ratio (or BEP ratio) compares earnings separately from the influence of taxes or financial leverage to the assets of the company.

• Comparisons Within an Industry

  • Ratios of risk such as the current ratio, the interest coverage, and the equity percentage have no theoretical benchmarks.
  • The actual metrics tracked and methods applied vary from stakeholder to stakeholder, depending on his or her interests and needs.
  • Ratios must be compared with other firms in the same industry to see if they are in line .
  • Ratio analyses can be used to compare between companies within the same industry.
  • For example, comparing the ratios of BP and Exxon Mobil would be appropriate, whereas comparing the ratios of BP and General Mills would be inappropriate.

• Stress and Strain

  • The ratio of force to area $\frac{F}{A}$ is called stress and the ratio of change in length to length $\frac{\Delta L}{L}$ is called the strain.
  • In equation form, Hooke's law is given by $F = k \cdot \Delta L$ where $\Delta L$ is the change in length and $k$ is a constant which depends on the material properties of the object.
  • The ratio of force to area $\frac{F}{A}$ is called stress and the ratio of change in length to length $\frac{\Delta L}{L}$ is called the strain.
  • Stress and strain are related to each other by a constant called Young's Modulus or the elastic modulus which varies depending on the material.

• Polyatomic Molecules

  • The science of molecules is called molecular chemistry or molecular physics, depending on the focus.
  • A compound's empirical formula is the simplest integer ratio of its constitutional chemical elements.
  • For example, water is always composed of a 2:1 ratio of hydrogen to oxygen atoms.
  • Ethyl alcohol, or ethanol, is always composed of carbon, hydrogen, and oxygen in a 2:6:1 ratio; this does not uniquely determine the kind of molecule, however.
  • Dimethyl ether, for example, has the same ratios as ethanol.

• Measures of Variability of Qualitative and Ranked Data

  • In particular, the value of these standardized indices does not depend on the number of categories or number of samples.
  • The variation ratio is a simple measure of statistical dispersion in nominal distributions.
  • Just as with the range or standard deviation, the larger the variation ratio, the more differentiated or dispersed the data are; and the smaller the variation ratio, the more concentrated and similar the data are.
  • This group is more dispersed in terms of gender than a group which is 95% female and has a variation ratio of only 0.05.
  • Similarly, a group which is 25% Catholic (where Catholic is the modal religious preference) has a variation ratio of 0.75.