efficiency ratio

(redirected from Business efficiency)
Also found in: Encyclopedia, Wikipedia.

Efficiency Ratio

In 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 ratio

The 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.

References in periodicals archive ?
Among the most improved countries, the indicators that stood out were related to government and business efficiency as well as productivity, according to Arturo Bris, the center's director.
In the four categories, the Philippines was pulled down by its rankings in government efficiency and business efficiency, which dropped by one and four notches, respectively.
The linkages are clearly evident as nine countries from the top 10 are also listed in the top 10 of the business efficiency factor.
In the IMD list, Brazil had the biggest gap at minus-26 points, based on a government efficiency ranking of 55 and business efficiency ranking of 29.
The ranking covers 61 countries and involves 342 criteria under four broad categories: economic performance, government efficiency, business efficiency and infrastructure.
In global efficiency matrices, both in terms of government efficiency and business efficiency, the UAE continued to perform well.

Full browser ?