Fundamentals of the RL ratio system

Abstract

The RL ratio system²⁵, established by Reichmann/Lachnit²⁶ (1976), represents a further development in the understanding of ratio systems. The RL system was designed for analysis purposes and, moreover, as an aid to management, in order to provide decision-making information within the framework of the planning and control process. As regards managerial decision-making, the system requires a selection with respect to content, extent, and information structure that is orientated towards the company’s needs. Although the target-related nature of the ZVEI system is maintained, this newer system differs in so far that there is almost no formal linkage between the ratios. The restriction of the system to relatively few ratios is made possible with the help of systems theory by giving prominence to essential, decision-related ratios in their interdependent relationships, and by avoiding the use of additional ratios to demonstrate their formal, mathematical relationships individually.