One of the most widely used forms of financial analysis is the use of ratios.
What is a ratio? Basically, a ratio is simply a comparison of any two numbers. For instance, someone can look at a group of people, count noses, and refer to the "ratio of men to women" in the group. Suppose there are thirty-five people, fifteen of whom are men. Then the ratio of men to women is 15 to 20.
In financial statement analysis, we compare numbers taken from financial statements and we call the comparisons key performance indicators (KPI's).
Each industry, and Higher Education is no exception, has many ratios specially suited to its needs, which are not used by other industries.