Ratio analysis is a quantitative method used to assess the financial health and performance of a real estate investment by comparing various financial metrics. It helps investors and analysts determine the viability and profitability of a property by examining key ratios such as return on investment (ROI), debt service coverage ratio (DSCR), and capitalization rate. This method allows stakeholders to make informed decisions based on numerical data, improving the overall understanding of real estate market dynamics.
congrats on reading the definition of Ratio Analysis. now let's actually learn it.