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Efficiency Ratio

   Also found in: Financial, Wikipedia 0.01 sec.
efficiency ratio
The ratio of the net usable area of a building to its gross floor area.

Efficiency Ratio 

a qualitative index, expressed by a relative quantity, that characterizes the level of economic efficiency achieved. The efficiency ratio is the ratio between the economic result obtained (for example, the total profit or the total savings from reducing the prime cost of output) and the expenditures incurred. The efficiency ratio can characterize such economic factors as the efficiency of socialist production as a whole, the efficiency of capital investments, or the efficiency of introducing new equipment.



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According to Callahan, the most likely cause for the increase in the efficiency ratio was the increase in provision expenses that the First Look credit unions reported in the first quarter.
Record loan growth, excellent asset quality and a record efficiency ratio contributed to our favorable third quarter results and helped us achieve our 19th consecutive quarter of record net income and earnings per share," said George Gleason, chairman and CEO.
HEATING/COOLING SYSTEMS The Oregon Department of Energy offers tips for consumers who are considering installing a home heating/cooling system, including: Make sure the system you buy has a Seasonal Energy Efficiency Ratio of 15 or greater, and an Energy Efficiency Ratio of 13 or greater.
 
 
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