Business Efficiency
The efficiency ratio, a ratio that typically applies to banks, in simple terms is defined as expenses as a percentage of revenue (expenses / revenue), with a few variations. A lower percentage is better since that means expenses are low and earnings are high. It relates to operating leverage, which measures the ratio between fixed costs and variable costs.
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Famous quotes containing the words business and/or efficiency:
“Faultless honesty is a sine qua non of business life. Not alone the honesty according to the moral code and the Bible. When I speak of honesty I refer to the small, hidden, evasive meannesses of our natures. I speak of the honesty of ourselves to ourselves.”
—Alice Foote MacDougall (1867–1945)
“I’ll take fifty percent efficiency to get one hundred percent loyalty.”
—Samuel Goldwyn (1882–1974)