Efficiency Ratio

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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.

efficiency ratio

The ratio of the net usable area of a building to its gross floor area.
References in periodicals archive ?
37 percent) is among three Arkansas-based banks that recorded sub-40 percent efficiency ratios through the first six months of 2015.
Even more significant is their partial load efficiency, owing to the achievement of European seasonal energy efficiency ratios (ESEER) of more than 8 as a result of their variable compressor speed (1,000 to 4,500 rpm) and Vi regulation.
Sufficiency and efficiency ratios are examples of information available to financial statement users from the cash flow statement.

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