Real net output ratio

Template:Unreferenced

The Real Net Output Ratio (or Vertical Range of Manufacture) describes in a value chain the fraction of the internal (company specific) production on the total production value of one company. The total production value of a company consists of internal production plus the sum of externally produced goods and services.

$R e a l N e t O u t p u t R a t i o = \frac{i n t e r n a l p r o d u c t i o n}{t o t a l p r o d u c t i o n v a l u e} = \frac{i n t e r n a l p r o d u c t i o n}{i n t e r n a l p r o d u c t i o n + e x t e r n a l l y p r o d u c e d g o o d s + e x t e r n a l l y p r o d u c e d s e r v i c e s}$

A Real Net Output Ratio of 0% relates to a company that does not have its own production and therefore only does trading.

Template:Authority control

Template:Econ-stub

Real net output ratio

Navigation menu

Search