ratio

Examples of ratio in the following topics:

• Ratio Analysis

  • Financial ratios in the corporate setting usually come from a company's balance sheet and income statement.
  • These can include profitability ratios, efficiency ratios, activity ratios, and debt ratios.
  • Ratios used to determine a project's health include operating margins, profitability margins, efficiency ratios, and debt.
  • All of these ratios give the project manager a better sense of the health of the project.
  • Recognize the importance of ratios and ratio analysis in financial assessment and project control

• The Importance of Productivity

  • Productivity is the ratio of total output to one unit of total input; high productivity means larger capital gains.
  • It is a ratio of actual output (production) to what is required to produce it (inputs).

• Equity Theory

  • According to the theory, equity structure in the workplace is based on the ratio of inputs (employee contributions) to outcomes (salary and other rewards).
  • Equity is measured by comparing the ratios of contributions and benefits of each person within the relationship.
  • Partners do not have to receive equal benefits (such as receiving the same amount of love, care, and financial security) or make equal contributions (such as investing the same amount of effort, time, and financial resources), as long as the ratio between these benefits and contributions is similar.

• Employee Selection

  • Two major factors determining the quality of a newly hired employee are predictor validity and selection ratio.
  • The selection ratio (SR) is the number of job openings (n) divided by the number of job applicants (N).

• Assessing and Restoring Equity

  • Equity is measured by comparing the ratios of contributions and benefits of each person within the relationship.
  • Individuals consider themselves treated fairly when they perceive the ratio of their inputs to outcomes to be equivalent to those around them.

• Matrix Structure

  • This increase in complexity can result in a higher manager-to-worker ratio, which can in turn increase costs or lead to conflicting employee loyalties.

• Strategic Management

  • Financial ratios should be calculated and performance reviews delivered to relevant personnel and departments.

• Operations-Management Tools

  • Among the tools used in Six Sigma are process mapping, trending charts, calculations of potential defects, ratios, and statistics.

• Scorecard Measurement

  • For example, financial measures can be defined as discrete values in the context of accounting ratios and continuous values in the context of dollar figures.

• Defining Productivity

  • Productivity–a ratio of production output to the input required to produce it–is one measure of production efficiency.