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 ...

The efficiency ratio is an indication of a company’s financial health. It analyzes how efficiently a company uses its assets and liabilities internally. However, at times, it becomes difficult to ...

A company with a favorable efficiency level is expected to provide stellar returns as it is believed to be positively correlated with price performance. In fact, efficiency level, which measures a ...

Efficiency level measures a company’s capability to transform available input into output. It is often considered an important parameter for gauging a company’s potential to make profits. Companies ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Amanda Bellucco-Chatham is an editor, writer ...

There are two ways a bank can cannibalize revenue and, by implication, shareholder return: They can underwrite bad loans and/or operate inefficiently — that is, to allow expenses to consume too much ...

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 ...