product packaging; bubble packaging, at bubble pack; postage and packaging; postage and packaging, at postage and packing; package; bubble packaging, at bubble wrap; bubble packaging, at blister pack
The efficiency ratio indicates the expenses as a percentage of revenue, with a few variations â it is essentially how much a corporation or individual spends to make a dollar; entities are supposed to attempt minimizing efficiency ratios. The concept typically applies to banks. It relates to operating leverage, which measures the ratio between fixed costs and variable costs.
Efficiency ratios measure the ability of a business to use its assets and liabilities to generate sales. A highly efficient organization has minimized its net investment in assets, and so requires less capital and debt in order to remain in operation.