Activity Ratio


Activity Ratio
Accounting ratios that measure a firm's ability to convert different accounts within their balance sheets into cash or sales.

Companies will typically try to turn their production into cash or sales as fast as possible because this will generally lead to higher revenues.

Such ratios are frequently used when performing fundamental analysis on different companies. The asset turnover ratio and inventory turnover ratio are good examples of activity ratios.


Investment dictionary. . 2012.

Look at other dictionaries:

  • activity ratio — A ratio used in management accounting consisting of the production achieved for an accounting period divided by the production level regarded as achievable for that period …   Accounting dictionary

  • activity ratio — A ratio used in management accounting consisting of the production achieved for an accounting period divided by the production level regarded as achievable for that period …   Big dictionary of business and management

  • activity ratio — number of accounts that are active out of the total number of accounts in a bank …   English contemporary dictionary

  • Ratio Studiorum — • The educational system of the Jesuits Catholic Encyclopedia. Kevin Knight. 2006. Ratio Studiorum     Ratio Studiorum     † …   Catholic encyclopedia

  • activity coefficient — ratio of the metabolic activity of a fish at rest with that at maximum activity …   Dictionary of ichthyology

  • Activity (chemistry) — In chemical thermodynamics, activity (symbol a) is a measure of the “effective concentration” of a species in a mixture, meaning that the species chemical potential depends on the activity of a real solution in the same way that it would depend… …   Wikipedia

  • activity coefficient — Number expressing the ratio of a substance s chemical activity to its molar concentration (see mole). The measured concentration of a substance may not be an accurate indicator of its chemical effectiveness as represented by the equation for a… …   Universalium

  • Ratio Analysis — A tool used by individuals to conduct a quantitative analysis of information in a company s financial statements. Ratios are calculated from current year numbers and are then compared to previous years, other companies, the industry, or even the… …   Investment dictionary

  • activity — 1. In electroencephalography, the presence of neurogenic electrical energy. 2. In physical chemistry, an ideal concentration for which the law of mass action will apply perfectly; the ratio of the a. to the true concentr …   Medical dictionary

  • activity sampling — Ops a work measurement technique used to analyze the activities of employees, machines, or business operations. Activity sampling requires random observations of the amount of time spent on a given activity to be recorded over a fixed period. The …   The ultimate business dictionary


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.