3.2 - Ratio Analysis
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Practice Questions
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What is ratio analysis?
💡 Hint: Think about what ratios are used for.
Name one benefit of using ratio analysis.
💡 Hint: Consider how companies assess their staff productivity.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is the primary purpose of ratio analysis?
💡 Hint: Think about what ratio analysis is generally used for.
True or False: The employee-to-revenue ratio can help identify staffing needs.
💡 Hint: Consider the relationship between workforce size and productivity.
1 more question available
Challenge Problems
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A company shows a declining employee-to-revenue ratio over three years. What implications could this trend indicate for future hiring?
💡 Hint: Think about how a growing company manages its employee base alongside revenue.
Evaluate how a renegotiated contract that reduces turnover could additionally improve the employee-to-revenue ratio.
💡 Hint: Consider how turnover and stability can affect productivity.
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