Measures the proportion of fixed costs versus variable costs in a business.

What it Measures ?

How much of our costs are fixed and how much vary with sales.

Relevant StakeHolders 

CFO, Budget Analyst

In-depth Use Case / Real-world Example

Fixed vs Variable Cost Ratio compares fixed costs (costs that remain constant) with variable costs (costs that change with production levels). For example, if a company’s fixed costs are ₹300,000 and variable costs are ₹200,000, the ratio is 3:2. Understanding this ratio helps businesses optimize their cost structure and manage risks during fluctuating sales.