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What is Productivity and Accounts Ratio?

Productivity is the average estimation of the production efficiency. Inputs and outputs together constitute the production process. When these production process i.e. input and outputare expressed in ratios, it becomes the productivity ratio. Productivity is an imperative factor in assessing the performances of the firms companies across the nation.

Whereas the accounting ratio also known as thefinancial ratio is the ratio of two selected numerical magnitudes which were extracted from any company’s financial statement. It is used to verify the strength and weaknesses of various companies. Accounting ratios are classified on the basis of financial aspect for any business.

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