Understanding Efficiency Ratio: A Key Bank Performance Indicator
An efficiency ratio is used to evaluate how efficient a financial institution i. The ratio is mainly used with banks and is commonly calculated by dividing the expenses that the bank incurs by the revenue. This number is then converted to a percentage. A bank with a lower percentage is viewed as more efficient than a bank with a higher one.
A bank will a low efficiency ratio indicates that the bank is not losing the revenue it generates to pay for overhead and operational costs. Analysts and managers can also look at the ratio and determine how much the institution has to spend in order to generate revenue.
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Calmar Ratio: A Risk-Adjusted Performance Metric Explained
What Is the Calmar Ratio? The Calmar ratio is a gauge of the performance of investment funds such as hedge funds and commodity trading advisors (CTAs). It is a function of the funds average com
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Corn-Hog Ratio: Understanding Livestock Profitability
What Is the Corn-Hog Ratio? The corn-hog ratio is a calculation for understanding the economic opportunity in raising livestock, used to determine the profitability of raising hogs versus growi
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Bank Drafts vs. Checks: Understanding the Key DifferencesBank Draft Vs. Check Bank drafts and checks are instruments that permit the transfer of money, but that's where their similarities end. If you are the named payee on a bank draft or a che...
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Understanding Bank Checks: Definition & How They Work
A bank check can be referred to by many names: cashier's check, official check, teller check or bank draft. All of these names represent the same concept, which is described in the simplest terms ...