Define: Activity Ratio

UK Accounting Glossary

Definition: Activity Ratio

Quick Summary

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

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