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Compression ratio cant be 100% (this would be deleating the file) so there is a clear limit to compression ratio.

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The "compression ratio" makes reference to the "%" of a file that can be compressed. For example, a compression ratio on 80% means a file of 100 units will be compresses to 20 units. However a file that was already compressed can not be compresses again, until you are using a lossy compressor, but you might loos important informaton and compressing to much will result in loosing the message of the file.

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With help of Anselmo Benassi

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Data compression can be lossy or lossless. Data compression is the art of reducing the number of bits needed to store or transmit data. Compression can be either lossless or lossy. Losslessly compressed data can be decompressed to exactly its original value. An example is 1848 Morse Code.

Lossy compression is a data compression method which discards (loses) some of the data, in order to achieve its goal, with the result that decompressing the data yields content that is different from the original, though similar enough to be useful in some way. Lossy methods are especially suitable for natural images such as photos in applications where minor (sometimes imperceptible) loss of fidelity is acceptable to achieve a substantial reduction in bit rate. These methods are most commonly used to compress multimedia data (audio, video, still images), especially in applications such as streaming media and internet telephony.

Lossless data compression on the other hand allows data to be fully reconstructed from the compressed data. For example, it is used in the popular ZIP file format and in the Unix tool gzip and RAR file format in the Windows tool WinRar. It is also often used as a component within lossy data compression technologies. Lossless compression is required for text and data files, such as bank records, text articles, etc. Lossless compression is preferred for archival purposes and often medical imaging, technical drawings, clip art or comics.

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Data compression can be lossy or lossless. Data compression is the art of reducing the number of bits needed to store or transmit data. Compression can be either lossless or lossy. Losslessly compressed data can be decompressed to exactly its original value. An example is 1848 Morse Code.

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In this image we can clearly see how does this algorithm work: as ew can see in the image, the bigger the compression rate is, the lower is the size of the image, but it also affects the image by distoring the image and making it blurry.

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The Science and Application of Data Compression Algorithms

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Taking on the Data Compression Challenge

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A group of scientists associated with Stanford University organized a forum of leading thinkers in the field of data compression--with the goal of catalyzing breakthroughs that will improve our interactions with digital information and images. This is the story of their get-together.

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The lossy compression algorithm allows the user to compress information, but you lose information in the process. This method is usually used when compression videos or audio, because most of the information that you lose when compressing is useless (because the human ear is unable to listen to this sort of sounds)

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The basic concept of the lossless compression algorithm, as the name suggest, is to make a file as small as possible, but without losing any of the original information. We can use this compression method to save text and images, for example. basically, as said before you can use this method when you dont want to lose original information