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 ?
While Gleason is pleased with the strides made, his sights are set on an ultimate goal of achieving a sub-30 percent efficiency ratio. Wall Street investors appreciate the earnings boost typically reflected by low efficiency ratios, too.
Panasonic Window Type Air Conditioners' class-leading 11.7 Energy Efficiency Ratio (EER), guarantees lower electricity consumption, making one's budget-saving purchase an even smarter choice.
In the end, the efficiency ratios simply confirm what has been observed in the contribution margin data, which is the fact that the School of Art and Social Science is a more financially efficient entity.
Significantly, this perfor-mance has been complimen-ted by improvement in risk management and control, marketing and business development, factors that have enhanced the bank s income statement and efficiency ratios during the first and second quarters.
This efficiency ratio indicates how effective a customer has been in utilizing its assets.
Efficiency ratios. Investors, creditors and others concerned with a company's cash flows are especially interested in the income statement and earnings measures.
Radkowski, who is based in Las Vegas, will be responsible for driving growth, bolstering brand recognition, and overseeing retail distribution production and efficiency ratios.
Fortunately, our high quality loan portfolio and one of the best operating efficiency ratios in the industry has enabled us to weather these conditions and still have record earnings!"
The half-year performance, which market watchers have described as quite reassuring to investors of the bank, indicated significant improvement, not just in earnings but also in efficiency ratios.These are key to the rebound of financial institutions after the meltdown and the massive provisioning which led to loss of assets witnessed in 2009.
Aermec says its NRA 'free-cooling' range of 407C chillers can deliver energy efficiency ratios up to a factor of 10 times greater than traditional compressor only chillers.
They are designed for coolant outlet temperatures of -15 to +15 [degrees]C, and operate with an energy efficiency ratio (EER) of approximately 5.5.

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