answersLogoWhite

0


Want this question answered?

Be notified when an answer is posted

Add your answer:

Earn +20 pts
Q: What does the capital-to-labor ratio measure?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Continue Learning about Economics

TYPES OF financial statement analysis?

There are numerous financial ratios use to analyse different aspects of a company's financial performance Profitability ratios * Profitability ratios measure the firm's use of its assets and control of its expenses to generate an acceptable rate of return. * Gross margin, Gross profit margin or Gross Profit Rate * Operating margin, Operating Income Margin, Operating profit margin or Return on sales (ROS) * Profit margin, net margin or net profit margin * Return on equity (ROE) * Return on investment (ROI ratio or Du Pont ratio) * Return on assets (ROA) * Efficiency ratio * Net gearing Liquidity ratios Liquidity ratios measure the availability of cash to pay debt. * Current ratio * Acid-test ratio (Quick ratio) * Operation cash flow ratio Activity ratiosActivity ratios measure the effectiveness of the firms use of resources. * Average collection period * DSO Ratio * Average payment period * Asset turnover * Inventory turnover ratio * Receivables Turnover Ratio * Inventory conversion ratio * Inventory conversion period * Receivables conversion period * Payables conversion period Debt ratios (leveraging ratios) Debt ratios measure the firm's ability to repay long-term debt. Debt ratios measure financial leverage. * Debt ratio * Debt to equity ratio * Long-term Debt to equity (LT Debt to Equity) * Times interest-earned ratio * Debt service coverage ratio Market ratios Market ratios measure investor response to owning a company's stock and also the cost of issuing stock. * Earnings per share (EPS) * Payout ratio * Dividend cover (the inverse of Payout Ratio) * P/E ratio * Dividend yield * Cash flow ratio or Price/cash flow ratio * Price to book value ratio (P/B or PBV) * Price/sales ratio * PEG ratio


How is dependency ratio used in economics?

"The dependency ratio is used in Economics to measure the working population and non working population. It is age-population ration, and takes into account both dependents and productive populations."


What does the debt to GDP ratio measure?

It measures that amount that the country actually produces as a whole compared to the debt that the nation owes.


What are total productivity measures?

A total measure of productivity is an indicator that expresses the ratio of all outputs produced to all resources used.


What is EPS and why is important in analysing share investments?

In its simplest form EPS (Earnings Per Share) gives an indication of how much of a company's profit is earned for each issued share. The ratio is calculated by dividing the Net Profit by the number of issued shares. The higher the ratio, the better is the investment. The EPS ratio is used to quickly differentiate between companies for investment purposes - as mentioned above the higher the ratio, the better the investment. Of course, this is only one measure of the the value of an investment. There are many other factors to be considered when making investment decisions, and such decisions should not be made on the basis of one ratio.

Related questions

Is Decibel is the unit of power ratio?

It can be the power ratio. If you measure voltage or sound pressure it is not the power ratio.


How do you measure transformer turn ratio by turn ratio set?

Read the manual


Which financial ratio is the best measure of the operating effectiveness of a firms management?

current ratio


The debt ratio is a measure of a firms what?

Leverage


What is an alternative method to measure the charge to mass ratio of an electron?

Modern Mass Spectrometry is the alternative method to measure the charge to mass ratio of an electron.


What type of scale is used to measure unemployment?

Ratio


What is a measure of liquidity?

the two ratios that measure liquidity is acid test and current ratio. the acid test ratio is current assets- stock/ current liabilities the current ratio is current assets/ current liabilities


What is a useful measure of solvency?

Debt to total assets ratio


What is the ratio between centimeter and tablespoon?

None. Centimeters are a measure of length while tablespoons are a measure of volume.


What does the contrast ratio mean in a projector?

The contrast ratio is a measure of how much light the projector can pump out. A high contrast ratio is especially important for daylight use.


How do you get the ratio of dimension?

You measure the different dimensions and then divide one by the other.


Radius ratio rules for the structure of solids?

The radius ratio rule provides guidelines on the coordination numbers and structures of ionic solids based on the sizes of cations and anions. For example, in the case of octahedral coordination, a ratio of r+/r- between 0.414 and 0.732 signifies stable structures. These rules help predict the coordination geometry and packing arrangement of ions in ionic solids.