Sortino Ratio

February 1, 2026 · 1 min read

Sortino Ratio is a finance/economics concept used to analyze decisions, risk, or performance. The key is what changes when it moves up or down-prices, cash flows, risk, or incentives.

Example: You might use Sortino Ratio to compare alternatives and choose a plan.

Related terms: GDP (Gross Domestic Product), Labor Force Participation Rate, Churn Rate.