A company's efficiency ratio is supposed to measure how well a bank is managed. But some experts consider the ratio less relevant as banks earn so much more from fee-based businesses. Bankers are ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

As of 2021, the New York Stock Exchange had approximately 2,500 listed companies. The fully-digital NASDAQ had over 3,700. With so many publicly-traded companies out there, investors need a quick, ...

Efficiency and operating ratios measure overheads as a percentage of operating revenues or fee income; in effect, they measure how efficiently a company is being operated. They are generally favored ...

A commonly calculated measure of bank productivity is the efficiency ratio: noninterest expense/(net interest income + noninterest income). Banks routinely include the results in their quarterly and ...

Holding all else equal, investors should always choose a bank with a low efficiency ratio as compared with a high one. I've long argued that the efficiency ratio is the single most important variable ...

The inventory turnover ratio shows how efficiently a firm has used its inventory. This is important in a small business, where storing excess inventory can be an unwanted burden and cost. Calculate ...

Operational efficiency refers to how well a business manages its resources and uses them to produce profits. While the best practices for maximizing operational efficiency are different for each ...

Financial ratios are relationships determined from a company’s financial information and used for comparison purposes. Examples include such often referred to measures as return on investment (ROI), ...

This easy-to-calculate metric lies at the heart of successful bank stock investing. I've come to the opinion over the years that the efficiency ratio is the single most important metric for individual ...