rxs0005
Can you have negative in ratios
eg : A : B = 2 : -4
can we extend this to A : B : C = 1 : -3 : - 4 is this possible
is there a rule for using negative ratios
thanks
The following is what I think:
Ratios tell you how big the numbers are with respect to each other when they are both positive. They generally measure real quantities so the negatives don't arise. Let me give an example.
A owes the bank $2 million.
B owes the bank $1 million.
A's debt : B's debt = 2:1 which makes sense
Assuming no assets,
A's net worth : B's net worth = -2 : - 1 = 2:1 (multiplying both by -1)
Is A's net worth twice of B's net worth? Certainly not. A has more debt.
So ratios are used only when both the numbers are positive.