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Let us tell you more about Efficiency Ratio

  • Efficiency ratio is basically used to analyze how effectively does a company uses its liabilities and assets internally. An efficiency ratio can help to calculate the turnover of receivables. Repayments of liabilities, general use of stock and machinery and also the quantity of usage of equity.
  • It is an essential part of calculating Finance flow of a company. This helps students in understanding the usage of liabilities and assets to meet certain debt of the company and yet attain profits.

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Issues of students in Efficiency Ratio

Many learners fall short in understanding the following cases in efficiency ratio-

  • Recognition of liabilities and assets
  • Calculation of balance sheet
  • Recognizing the expenses of a company
  • Calculating the revenues
  • Calculating the efficiency ratio with given figures.

Other than these problems, students might face some theoretical issues in understanding the concepts. Our team, work on each of the problems and help to generate accurate homework according to you need.

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