Define: Activity Ratio

UK Accounting Glossary

Definition: 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.


Full Definition of Activity Ratio


Activity Ratio FAQ's

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Activity Ratio. Payroll & Accounting Heaven Ltd. November 12, 2019
Chicago Manual of Style (CMS):
Activity Ratio. Payroll & Accounting Heaven Ltd. (accessed: November 12, 2019).
American Psychological Association (APA):
Activity Ratio. Retrieved November 12, 2019, from website:

Definition Sources

Definitions for Activity Ratio are sourced/syndicated from:

This glossary post was last updated: 27th January 2019.