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.

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.
22 /PRNewswire/ -- Top performing banks in mortgage lending, commercial lending and retail banking have 20 to 25 percent better overall efficiency ratios (operating expense divided by the sum of net interest and non-interest income) than average performers in these lines of business.
Sufficiency and efficiency ratios are examples of information available to financial statement users from the cash flow statement.
63% Efficiency ratios (excludes certain nonrecurring items): Standard efficiency ratio 74.
Look for units with the highest Energy Efficiency Ratios for greater savings.
Through this approach, the company identifies and creates an implementation environment that not only guarantees revenue improvements and efficiency ratios, but also uses a monitoring system to ensure benefits year after year for its clients.
Some generally marginal deteriorations occurred in the efficiency ratios and the growth ratios fell to some degree over the three years
GOL has one of the youngest and most modern fleets in the industry with low maintenance, fuel and training costs, and high aircraft utilization and efficiency ratios.
Louis, Missouri for an active pilot program using a biometric component in a net-centric supply chain infrastructure to enhance productivity and transportation effectiveness among trading partners crossing regional borders as well as helping private businesses to achieve higher capital efficiency ratios.
It also has one of the youngest and most modern fleets in the industry that results in low maintenance, fuel and training costs, and therefore high aircraft utilization and efficiency ratios.

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