This
ratio is quite straight-forward. How
much revenue does a company need to take
in to produce how much net earnings?
While this ratio will differ between
business models, it is a good comparison
to show how one company sits compared
to its competitor.
To
calculate:
N=
per dollars of revenue Revenue Efficiency
= (Net earnings / Revenue) x N
Charting
this ratio historically will also give
you an idea of future prospects. Ultimately
an investor would like this number to
be as high as possible.
Historical and current end-of-day data provided by Interactive Data Corp. and subject to terms of use. Fundamental data supplier: Mergent
Dow Jones Industrial Average is copyright Dow Jones & Company, Inc.
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