What does it mean for a company to be “efficient”? Even when companies are achieving sales, how can you tell if they are making the most of their resources? What are some ways they can improve? Learning to perform an efficiency analysis can answer these questions and more.
Along with soundness, growth, profitability, and overall strength, performing an efficiency analysis is an essential part of financial analysis.
Learn to use a company’s balance sheet to calculate a company’s Total Assets Turnover Ratio, Receivables Turnover Ratio, Inventory Turnover Ratio, and Payables Turnover Ratio to better identify where a company is performing well, or where there might be underutilized resources.
Take this course to gain an enhanced understanding of how an efficiency analysis can both shed light on a company’s characteristics, and ways it can improve.