Before we start learning how to calculate ratios, first we must learn what is a ratio?
Ratio: In simple mathematics, relationship or comparison between two more numbers is known as ratios. Ratios are normally written as “:” to show the connection between two numbers, for instance. If there are 2 red balls and 3 blue balls on the table you could write their ratio as [2:3].
Unfortunately, there is no systematic way to calculate a ratio, but there is an easy way around for doing the same, you can try the below guidelines to calculate ratio in Excel.
Now, let’s learn how to calculate ratio.
Case study 1: Calculate the ratio of products between two shops
Step 1: Create a table same as like above picture. This table is showing a number of products in the store of two shops. we are going to calculate the ratio of each product between these 2 shops. Column D is for calculating GCD and Column E is for ratio.
What is GCD?
The GCD Function is used to calculate the greatest common denominator between two or more values. We can use GCD to then create our ratios. The GCD Function is extremely easy to use. Simply type =GCD( followed by the numbers that you wish to find the greatest common divisor of (separated by commas).
Formula: =GCD(Number 1, Number 2)
Once you understand how GCD works you can use the function to find your ratios by dividing each of the two numbers by their GCD and separating the answers with a colon “:”.
Now we are ready to calculate ratio. First, we need to calculate GCD in column D then we will calculate ratio in column E using GCD.
Step 2: In cell D2 type this formula to calculate GCD between B2 and C2.
Now press ENTER.
Step 3: Now we have got GCD result 5 for cell B2 and C2. Now copy this formula into other cells of the column using Fill Handle dragging below to other cells of column D.
Step 4: Now we have got all GCD values of all rows in column D. Now let’s Calculate ratio.
Formula: = Num1/GCD(Num1, Num2) & “:” & Num2/GCD(Num1, Num2)
This complicated formula is basically saying,
= (Number of times Number 1 contains GCD) & “:” & (Number of times Number 2 contains GCD)
In our example the formula would be written as:
=B2/GCD(B2,C2) & ”:” & C2/GCD(B2,C2) or =B2/D2 &”:”& C2/D2 (Because We already calculated GCD(B2,C2) in cell D2. So, we can say D2= GCD(B2,C2))
Which results in:
=100/5 & “:” & 15/5
= 20 & “:” & 3
Step 5: In cell E2 type this formula to calculate ratio:
=B2/D2 &”:”& C2/D2
Press ENTER. Now we have got the ratio between 100 and 15 as 20:3 in cell E2.
Step 6: Copy the ratio formula in another cell of column E. Now we have got the ratio of the whole table. So, we have successfully learnt how to calculate ratio in excel.