Real net output ratio

Real net output ratio

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.

extstyle Real,Net,Output,Ratio = frac{internal,production}{total,production,value} = frac{internal,production}{internal,production,+,externally,produced,goods,+,externally,produced,services}

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


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