The partition coefficient is a ratio that measures a substance's relative solubility in lipid and aqueous phases. It is calculated as the concentration of a solute in the lipid or organic phase divided by its concentration in the water or aqueous phase. A partition coefficient greater than 1 indicates a lipophilic substance that is more soluble in lipids, while a value less than 1 represents a hydrophilic substance that is more soluble in water. Octanol is commonly used as the non-aqueous phase and water as the aqueous phase when experimentally determining drug partition coefficients, which affect processes like solubility, administration route, absorption, distribution, and elimination.