Industry-specific ratios Available seat kilometres is a common measure of productivity in the airline industry. Cost to income ratios are a key measure of comparison across the banking industry. Sales per staff member of square metre of available space are used to compare performance in retail. Patient to staff ratios are included in state government enterprise bargaining agreements as part of conditions of employment for nurses.

1 Choose an industry and research (or design) some ratios which could be used to measure and compare performance in that industry.

2 Why do some industries use ratios outside those we have covered in this chapter to measure and assess organisational performance?