Activity Ratio
Activity ratios measure how efficiently a company uses assets, receivables, inventory, or working capital to support sales.
Efficiency-analysis terms for activity, asset turnover, fixed-asset turnover, operating ratio, working ratio, and efficiency ratio.
Turnover and Activity Ratios covers efficiency-analysis terms for activity, asset turnover, fixed-asset turnover, operating ratio, working ratio, and efficiency ratio.
Use these pages when reported earnings, normalized metrics, market multiples, asset values, or peer comparisons change relative value or analytical interpretation. It sits inside Turnover, Efficiency, and Working-Capital Ratios, so readers can move up when the broader valuation context matters.
Use the table below to choose the narrower valuation branch before relying on a model input, market multiple, forecast, risk premium, price signal, or recommendation.
| Area | Use it for |
|---|---|
| Activity Ratio | Activity ratios measure how efficiently a company uses assets, receivables, inventory, or working capital to support sales. |
| Asset Turnover Ratio | The asset turnover ratio compares revenue with assets, indicating how efficiently a business uses its asset base to generate sales. |
| Efficiency Ratio | An efficiency ratio compares output, revenue, or standard activity with inputs used, highlighting operating productivity. |
| Fixed Asset Turnover | Fixed asset turnover compares sales with net fixed assets, showing how productively a company uses long-lived operating assets. |
| Operating Ratio | Operating ratio compares operating expenses with revenue, showing how much revenue is consumed by core operating costs. |
| Working Ratio | Working ratio compares operating expenses with net sales, helping assess expense intensity and operating efficiency. |
Earnings and multiples content is educational and does not provide investment, tax, accounting, appraisal, or valuation advice.
Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.
Activity ratios measure how efficiently a company uses assets, receivables, inventory, or working capital to support sales.
The asset turnover ratio compares revenue with assets, indicating how efficiently a business uses its asset base to generate sales.
An efficiency ratio compares output, revenue, or standard activity with inputs used, highlighting operating productivity.
Fixed asset turnover compares sales with net fixed assets, showing how productively a company uses long-lived operating assets.
Operating ratio compares operating expenses with revenue, showing how much revenue is consumed by core operating costs.
Working ratio compares operating expenses with net sales, helping assess expense intensity and operating efficiency.