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Civilian factories are also used to trade resources, should your docks or mil factories need some and there are none available in your country.
Civs build and repair buildings, and can be traded for resources.
Mils build military equipment (guns, tanks, planes). Can also be used to convert old equipment.
Dockyards build and repair ships and subs.
Everything you need for high level and detailed explanations of mechanics is here:
https://hoi4.paradoxwikis.com/Hearts_of_Iron_4_Wiki
You need military to build your army.
You need civilian to build strategic staff (including military fact) on the map.
YOU SHOULD NEVER NEVER NEVER NEVER convert them into military , better build military , just far better.Only exception - if war starts earlier and you are not ready and you are in damn need of material.But even then DO NOT convert them in building tab - use your political power , since you can convert 4 factories instantly.With other civilian just continue to build new militry.This way , if you can hold enemy for 3-5 monthes , you will be able to rush military production really quickly.(this scenario usullay happans in multiplayer when you play USSR and German ♥♥♥♥♥♥♥ rush agression focus against you , before you will get rid of great purge)
When you should stop building them?
Depends on country you play! If you play Germany , you dont build them at all...you will use at 100% your MEFO advantage to build military factories , civilian you will get by absorbing 50% of Europe with your social doctrines.
If you play USA - you will be building them until 1941-1942.Sometimes even until 1943 , if Allies hold in Europe vs Germany push.
In general you want to build as many as you can in the early beguinning (germany is an exception) and stop biuilding them when you feel that in around 1 year big war will start.You will need to build some bunkers , or more military , or airports , or naval etc - depends on what you miss.
Thier is no real Ratio, its all down to how many you want compared to what ells you need.
I prefer alot of Civ Factories, even as Germany and i concentrate on that mostly early on, dispite one geting 12 Extra through Focus with Germany for example, why?
Well for every 15 Civ Factories you have the building in the build que will build faster, meaning they will get up and running faster, couple that with high Infrastructure you can build up super fast.
So I try to get as many Civ Factories to allow me to get 3-4 full 15 factorie lines, allowing me to build Infrastructur, Military Fac's, Dockyards etc etc much faster, having Infrastructure around a minimum of 6/10 is great, better is 8/10 in the provinces that your building buildings in... this speeds up the Construction alot.
When to stop building them realy depends on when you plan to go to War generaly speaking for one, and how fast you can then build Military/Dockyards etc with the given amount of Civilian Factories available.
IMPORTANT NOTE!: Thier is a province Cap as to how many building can be put up in a Province, so check what provinces you have and how much you can build, as alot of the Buildings at least Dockyards, Mil, Civ, Silo, Synthetic and Reactors share the same Province building slots available ;)
other building projects like Infra, AA, Defensive Bunkers/Coastle are seprate.
As to what LoveStory said about Germany ''If you play Germany , you dont build them at all...you will use at 100% your MEFO advantage to build military factories''
Thats just wrong and extreamly bad, yes MEFO is decent, but as Germany you'd want to also focus Civ Factories at leat 1 Year to 1 and half... otherwise you will need so many Imports on certian recources that you will have problems early pending...
Its not wrong, but every player has thier way of playing/strategy some are better then others.
Im a player that Min-Max's, and I also am one that likes to Declare War early on a decent target if im playing Germany or Japan, so that i can boost my Economy better with the target ♥♥♥♥♥♥♥♥ Resources/ Factories that it has.
It all comes down as said by others, as to what Countrie you playing, your goals, your Strategy...
But ones things for sure, Civilian Factories are never EVER to be ignored eitherway, as they are so important for building, keeping your Economy going and Repairing Bombed buildings in provinces.
It used to be bad.No more.Now you CAN ignore civil with Germany , and even you SHOULD ignore them.
Right now you dont need oil anymore for mech units. Hourrah, by simply removing oil cost , Germany now rocks as fack.
And by the time you will actually need oil into fuel , you will eat Autrich , Checkoslovakie , Slovenia etc etc etc. with ton of free civil factories.
By focusing only on Military you will be able just by national focuses earn about 120 free civil factories and go up to 140-150 by absorbing whole Poland in 1939 , or even by the end of 1938.
This amount is enough to build up infrastructure in ressourcefull regions and airports to fast rush France and GB with paradrops.And you dealt with them , you will be able to boost synthetics in 1940-1941 , right after MEFO debuff is finished.This way you will prepare oil base for mech division before you go on USSR.
But Germany is only one who can do it , since its unique national focuses
! civ can bring you ressources , sure...if you play venezuella or something...German army brings you whole world, so....