A ratio is the amount of one quantity compared to another quantity, or, in simpler terms, one quantity divided by another. Ratios are written with a colon (the : symbol).
When two ratios are equal, they are a proportion.
All prices of goods and services are ratios.
Example of a ratio
- Texas is approximately 16 times the size of the Netherlands. Thus the ratio of the size of Texas to the Netherlands would be 16 to 1, written as 16:1.
- A wage rate of $10 per hour is expressed as 10:1.
- If gold sells for $1500 per ounce, and silver sells for $25 per ounce, it costs approximately 60 ounces of silver to purchase one ounce of gold, or a ratio of 60:1.