I like to think of efficiency as a ratio, or fraction. Most often the input value of the equation is time or money. Efficiency is something almost everyone strives for in some aspect of their life.

Rate of inventory turnover is an efficiency ratio which determines how quickly a firm goes through its stock. A high stock turnover is preferable as this means stock is selling – marketing and ...

The efficiency ratio takes the noninterest expenses (salaries ... Nonperforming loans are loans that are behind on payment for a certain time (90 days is usually the threshold).