As you very well may have guessed, the equation for Revenue to Space is:
Revenue/Total Square Feet of Office
This can also be used for warehouses, plants, etc.
The result will be dollars per square foot and will give you an idea of the earning power of each square foot of space. Keep in mind that this is a sales ratio and other similar ratios will be discussed in future blogs.
Naturally, a higher amount per square foot is preferable. If you have questions on how to determine if the number is favorable or not, you can always check out the blog on understanding ratios.
There are several applications for this ratio and I will discuss them in the next post.
Your business THRIVES on a solid FOUNDATION!