Activity Ratio

Business, Legal & Accounting Glossary

Definition: Activity Ratio


Activity Ratio

Quick Summary of Activity Ratio


The activity ratio is a metric which determines a company’s ability to convert it’s balance sheet accounts into revenue.




What is the dictionary definition of Activity Ratio?

Dictionary Definition


This ratio is used in Management accounting and consists of the production achieved for an accounting period divided by the production level regards as achievable for said period.

Production Achieved / Projected Production Level.


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Activity Ratio. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
March 29, 2024 https://payrollheaven.com/define/activity-ratio/.
Chicago Manual of Style (CMS):
Activity Ratio. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/activity-ratio/ (accessed: March 29, 2024).
American Psychological Association (APA):
Activity Ratio. PayrollHeaven.com. Retrieved March 29, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/activity-ratio/

Definition Sources


Definitions for Activity Ratio are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 27th January, 2019 | 0 Views.