# How to Determine Production Ratio

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Production ratios are used in business and government to show how a particular product or factor is performing. For example, summer-to-winter production ratios are used on dairy farms to evaluate the effectiveness of new management practices. A ratio higher than 1 means that production has increased and a ratio below 1 means that production has decreased. To calculate a production ratio, you need a little basic math.

Enter the amount of the production from the present or recent period into the calculator. For example, if this quarter your company produced 500 crates of apples, enter "500" into the calculator.

Press the division sign on the calculator and then enter the amount you produced in the prior period. For example, if you produced 250 crates of apples the previous quarter, type "250" into the calculator.

Press "Enter" to get the total. In the above example, the calculated production ratio is 2.

#### Tips

• Production ratios often make more sense when expressed as a percentage. To get the percentage, multiply the number you calculated in Step 3 by 100. In this example, the production ratio is 200 percent, indicating production is up by 200 percent from last quarter.