Performance Ratio

Performance ratio is a measure used to evaluate how efficiently a system or process converts input into output, often expressed as a percentage. In business, for example, it assesses how well resources like time and money are used to achieve results. A higher performance ratio means better efficiency, indicating that more is achieved with less input. This concept is applicable in various fields, such as finance, manufacturing, and energy, allowing organizations to identify strengths and areas for improvement to enhance overall productivity and effectiveness.