That one (and I'll bet others as well) approximates the conversion.
Not a big deal for short measurements, but be aware its around 1.5% off.
Well, I'm guessing that since the ruler notes directly on it, that in HO scale, 3.5mm = 1 FOOT, then it is not off any percentage at all, but right on the money.
For another method, I keep cheap calculators from the Dollar Store laying around the house. They USED to cost a dollar, but now they're more like a buck and a quarter (inflation, and all that stuff, ya' know). Converting is easy with one. Let's say you measure something an actual 5-5/8" (5.625") on your HO layout. How many scale feet is that? First, convert the actual inches to actual feet. Using your buck-and-a-quarter calculator, enter 5.625", and then divide it by 12. That converts the actual inches to actual feet. 5.625" divided by 12 = .46875, which is the actual feet (foot) length.
Then multiply the .46875 actual feet measurement times 87.1 and the answer in scale feet is 40.828 feet, or 40'-9 15/16" (or may as well round off and call it 40'-10", or even 41', if you don't have to be too picky).
I dunno, I have a good scale rule somewhere, but half the time it's so much easier and faster just to grab a tape measure and a calculator (at least for me it is).
Hope this helps.

