Which metric measures the rate at which an organization generates revenue from selling products?

Throughput is the metric that measures the rate at which an organization generates revenue from selling products. It reflects the amount of product or services that a company can produce and sell within a specific timeframe, directly correlating to revenue generation. Higher throughput indicates that the organization is effectively converting its resources into sales, which is crucial for profitability and growth.

This metric helps to assess not just production efficiency but also the effectiveness of sales processes. By maximizing throughput, organizations can increase their revenue streams, better manage inventory levels, and improve cash flow, which are essential for maintaining a competitive edge.

In contrast, yield measures the amount of product produced as a percentage of the total input, focusing more on efficiency in production methods rather than revenue. The efficiency ratio typically assesses operational efficiency relative to costs, providing a view of performance but not directly linking to revenue generation. Lastly, the quality index focuses on the quality of products or services provided rather than their output rates or the revenue they generate, making it less relevant in the context of measuring revenue generation through sales.