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.

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.
January 17, 2022
Chicago Manual of Style (CMS):
Activity Ratio. Payroll & Accounting Heaven Ltd. (accessed: January 17, 2022).
American Psychological Association (APA):
Activity Ratio. Retrieved January 17, 2022
, from website:

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 | 4 Views.