The ratio is imho easiest to identify by keeping track of buzzwords (ie business lingo). The more vague (yet at the same time oddly specific) the lingo is, historically the more likely the CEO and company is pulling one over the investors eyes. The more straight forward and normal the lingo is the more likely they are to being honest, because they can't avoid the hard facts when being forward with their language.

When it comes to investing in companies this is one of the key things I look for. It can be used on multiple levels, however, some companies will spin buzzwords who are legitimate. The key is identifying the difference between empty buzzwords and meaningful business language.