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Efficiency Ratios

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    Gabriel O.
    ML
    Gabriel O.

    Efficiency ratios often look at the time it takes companies to collect cash from customer or the time it takes companies to convert inventory into cash,in other words, make sales. Thesesystem is used by management to help improve the company as well as outside investors and creditors looking at the operations of profitability of the company. Efficiency ratios go hand in hand with profitability ratios.

    Wendy C.
    AU
    Wendy C.

    Efficiency Ratios show the financial and the stock turnover.

    Samuel F.
    ZA
    Samuel F.

    Efficiency ratios also called activity ratios measure how well companies utilize their assets to generate income. Efficiency ratios often look at the time it takes companies to collect cash from customer or the time it takes companies to convert inventory into cash—in other words, make sales. These ratios are used by management to help improve the company as well as outside investors and creditors looking at the operations of profitability of the company. Efficiency ratios go hand in hand with profitability ratios. Most often when companies are efficient with their resources, they become profitable. Wal-Mart is a good example. Wal-Mart is extremely good at selling low margin products at high volumes. In other words, they are efficient at turning their assets. Even though they don't make much profit per sale, they make a ton of sales. Each little sale adds up

    Harrison A.
    AT
    Harrison A.

    Efficiency Ratios measures how effective the firm or organisations employs the resources at its command . These ratios involves comparisons between the level of sales and the investment in various asset accounts. The efficiency ratios presumes that a proper balance should exist between sales and various assets account inventory . efficiency ratio indicates the rat of return obtained by the company per € of asset invested .

    Harrison A.
    AT
    Harrison A.

    What is Ratio ?

    Zachary B.
    US
    Zachary B.

    What are efficiency ratios?

    Diamond T.
    US
    Diamond T.

    Efficiency ratios also called activity ratios measure how well companies utilize their assets to generate income. Efficiency ratios often look at the time it takes companies to collect cash from customer or the time it takes companies to convert inventory into cash—in other words, make sales. These ratios are used by management to help improve the company as well as outside investors and creditors looking at the operations of profitability of the company. Efficiency ratios go hand in hand with profitability ratios. Most often when companies are efficient with their resources, they become profitable. Wal-Mart is a good example. Wal-Mart is extremely good at selling low margin products at high volumes. In other words, they are efficient at turning their assets. Even though they don't make much profit per sale, they make a ton of sales. Each little sale adds up

    Douglas R.
    US
    Douglas R.

    Ratio's need to be paid on time.

    Ardian R.
    flag-default-icon
    Ardian R.

    A low efficiency ratio could indicate inefficiencies in the assets themselves or in the management team operating them.

    Erick V.
    PE
    Erick V.

    El portafolio de créditos de una empresa es muy importante pero para este fin deben de tener un buen departamento de evaluación y riesgo sumado al departamento de cobranzas, ya que lo que podríamos estimar como ventas exitosas y cuentas por cobrar mediano y corto plazo se podría convertir en cifras en rojos al no tener en el tiempo estimado el retorno de estos, es bueno recordar que la palabra crédito viene del latín Credere igual a creer confiar, es una operación de cobro a futuro y todo crédito puede disminuirse el riesgo pero no eliminarse en su relación están proporcionalmente unidos

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