efficiency ratio

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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.

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Dubai: The world competitiveness ranking this year once again showed a strong correlation between business efficiency and competitiveness although the overall ranking reflects more than 300 criteria.
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The USA remains at the top of the overall global ranking as a result of its strong business efficiency and financial sector, its innovation drive and the effectiveness of its infrastructure.
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