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The capital-to-labor ratio measures the amount of capital available per unit of labor in a production process. It signifies the level of capital intensity in an economy or industry, indicating how much machinery, equipment, or technology is used relative to the workforce. A higher ratio suggests more capital investment per worker, which can lead to increased productivity and efficiency. Conversely, a lower ratio indicates a more labor-intensive approach to production.

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3d ago

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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 a country's export ratio?

A country's export ratio is a measure of its total exports relative to its total economic output, often expressed as a percentage of Gross Domestic Product (GDP). It indicates how reliant an economy is on international trade, reflecting the importance of exports in driving economic growth. A high export ratio suggests that a country is heavily engaged in global markets, while a low ratio may indicate a more domestically focused economy.