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.


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Full Definition of Activity Ratio



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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
https://payrollheaven.com/define/activity-ratio/
Modern Language Association (MLA):
Activity Ratio. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. September 15, 2019 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: September 15, 2019).
American Psychological Association (APA):
Activity Ratio. PayrollHeaven.com. Retrieved September 15, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/activity-ratio/

Definition Sources


Definitions for Activity Ratio are sourced/syndicated from:


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