Efficiency ratios

IB Business Management: Efficiency ratios

Efficiency ratios are used to measure how well the resources of a business are used in order to generate income from the firm’s capital. In other words, efficiency ratios examine the use of an organization’s resources in terms of its assets and liabilities.There are four efficiency ratios specified in the IB Business Management syllabus:These four efficiency ratios are used to measure how well a business uses its...

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