Productivity Ratios & Formulas

Essential ratios and formulas for productivity measurement and analysis

Understanding Productivity Ratios

Productivity ratios provide standardized ways to measure efficiency, utilization, and performance across different business contexts. These formulas allow you to compare productivity over time, benchmark against industry standards, and identify specific areas for improvement.

Available Calculators

Productivity Ratio Calculator

Calculate asset turnover, idle time, and labor efficiency ratios

Labor Productivity Calculator

Basic and advanced labor productivity calculations

Common Productivity Ratios

Labor Efficiency Ratio (Standard Hours Allowed ÷ Actual Hours Worked) × 100%

Measures how efficiently labor is being used. Above 100% indicates high efficiency.

Asset Turnover Ratio Net Sales ÷ Average Total Assets

Measures how efficiently assets generate revenue. Higher is better.

Idle Time Ratio (Idle Time ÷ Total Available Time) × 100%

Percentage of time not spent on productive activities. Lower is better.

Capacity Utilization Rate (Actual Output ÷ Potential Output) × 100%

Percentage of total capacity being used. 85-90% is typically optimal.

How to Use Productivity Ratios

Trend Analysis

Track ratios over time to identify improving or declining productivity

Benchmarking

Compare your ratios to industry averages or competitors

Goal Setting

Use ratios to set specific, measurable productivity targets

Root Cause Analysis

Identify which specific factors are affecting overall productivity