| 释义 |
Efficiency Ratio
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 ratioThe ratio of the net usable area of a building to its gross floor area.efficiency ratio
Efficiency RatioIn banking, a ratio of expenses to revenue. For example, if a bank spends $10 million and makes $15 million in a given month, its efficiency ratio is .67. Banks desire a lower efficiency ratio because this means that the bank is making considerably more than it is spending and is therefore on sound fiscal footing. One way to conceptualize the efficiency ratio is to say it is the measure of what a bank must spend in order to make one dollar. In the above example, the bank must spend 67 cents.efficiency ratioThe ratio of leasable space to gross space in a building.When planning a building, it is important to balance the need to maximize the efficiency ratio in order to lease the maximum amount of space possible,against the aesthetic need to have wide corridors and open spaces. |