Sales and
management ratios are indicators of a company's efficiency, more specifically
asset utilization. Apparently, the higher the so-called asset turnover rate,
the better. This variable indicates a rapid collection of accounts receivable,
high utilization of fixed assets, and a small amount of overstock.
Debt
turnover is reasonable if it is low, as it means that the company holds as much
cash as possible. Overall, the sales ratio can belong to different
subcategories depending on what is being measured. B. Accounts receivable,
liabilities, investments, or others. The measurement results show exactly what
a company needs to do to achieve better performance.
For control indicators, it helps to measure
and represent deviations in deviations that determine the efficiency of
performance. Therefore, those subtypes, called capacity ratios, define the
ratio of actual work time to budget work time. Activity rate represents the
relationship between the number of hours worked and the work performed and is
expressed as a percentage of standard time in the budget. Finally, the
efficiency ratio, which also represents productivity, is expressed as a calculation
of the actual time spent producing a particular job. Control metrics help you
determine the fine-tuning you may need for your work or sales process.