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Debtor turn over ratio = Total sales / debtors By using this formula debtor turnover ratio can be found.
Profit Margin ratio is the comparison of profit as a percentage of revenue and calculated as follows Profit Margin ratio = Net Profit/Revenue
One can calculate the working capital ratio by: Totalling ones current assets and current liabilities, working capital is calculated by subtracting the current assets from current liabilities. The ratio is calculated by dividing the current assets by the current liabilities.
by getting the difference between current assets and stock and then dividing the difference by current liabilities.
Productivity growth is an important metric in assessing economic performance and efficiency, calculated as the percentage change in productivity over a specified time frame. But how to calculate productivity? The formula for calculating productivity growth is expressed as: Productivity Growth = (New Productivity - Old Productivity) / Old Productivity × 100 In essence, productivity represents the relationship between the output generated and the inputs utilized, serving as a crucial indicator of efficiency. A common way to quantify productivity is through the ratio of output, such as gross domestic product (GDP), to input measures like labor hours. Understanding this ratio is vital for analyzing economic trends and making informed decisions in both business and policy contexts.
Total factor productivity is the ratio of total value added and the total cost of inputs.
Formula to calculate the ratio
improve productivity of workforce
Yes.
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No. It can be but need not be. For example, you might calculate the ratio of today's temperature in Celsius and in Fahrenheit and calculate the ratio. That is not a rate.
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To calculate a performance ratio, you typically divide one metric by another relevant metric to assess efficiency or productivity. For example, in finance, the Return on Investment (ROI) is calculated by dividing net profit by the total investment and multiplying by 100 to express it as a percentage. In a business context, you might calculate the efficiency ratio by dividing operating expenses by total revenue. Always ensure the metrics used are comparable and relevant to the specific performance being analyzed.
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A total measure of productivity is an indicator that expresses the ratio of all outputs produced to all resources used.