Real net output ratio

The Real Net Output Ratio^[1] (or Vertical Range of Manufacture^[2]) 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.

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

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

References

^ "Gabler Wirtschafts Lexikon". 1984. doi:10.1007/978-3-322-87454-2. {{cite journal}}: Cite journal requires |journal= (help)
^ Shraddha (2023-05-04). "Vertical integration - Leanbyte". wordpressdemo.leanbyte.de. Retrieved 2025-05-29.

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[1] "Gabler Wirtschafts Lexikon". 1984. doi:10.1007/978-3-322-87454-2. {{cite journal}}: Cite journal requires |journal= (help)

[2] Shraddha (2023-05-04). "Vertical integration - Leanbyte". wordpressdemo.leanbyte.de. Retrieved 2025-05-29.

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