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Activity or Operation Ratios Concept
Activity or operation ratios form a type
of economical-financial indicators that seek to measure the efficiency
level in the company’s assets management. Usually activity ratios assume
the form of rotation ratios (which represent the number of times that an
asset transforms in sales on a certain period of time) or average
deadlines (which represents the average time that an asset takes to be
transformed in sales)
There are several types of operation
ratios, standing out the following:
. Assets Rotation;
. Existences/Stocks Rotation;
. Clients Rotation;
. Average Receipts Deadline;
. Average Existences/Materials in Stock
Deadline;
. Average Payment Deadline.
Translated from Portuguese
by Susana Saraiva, Portuguese-English and English-Portuguese translation
specialist. Contact: spams@sapo.pt.
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