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 ?
Feed intake, feed efficiency ratio (FER) and protein efficiency ratio (PER) of tilapia AFB1 and 4TX supplemented diets for 10 weeks.
Among these metrics, BofI ranked seventh overall and fifth in efficiency ratio among 546 companies eligible for the ranking.
See Page 17 for a list of the Top 75 Arkansas banks ranked by efficiency ratio through June 30.
Contribution margin dollars per administrative labor dollars is the measurement for the administrative labor efficiency ratio.
According to Callahan, the most likely cause for the increase in the efficiency ratio was the increase in provision expenses that the First Look credit unions reported in the first quarter.
Note: Les Cunningham uses the inverse of this efficiency ratio to rate the members of his networking groups.
The company's efficiency ratio for the quarter improved to a record 43.

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