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What does the Efficiency Ratio Mean?

The efficiency ratio is a metric that measures how effectively a company uses its assets and liabilities to run the business smoothly.

There are several types of efficiency ratios that can give an analyst insight into a company: accounts receivable turnover, fixed asset turnover, sales to inventory, and and stock turnover ratio.

Keywords: liabilities, assets, efficiency ratio, assets and liabilities, business management, market research, turnovers, turnover ratio,