how do analysts use efficiency ratios 
analysts use efficiency ratios to measure the performance of a business s short term or current performance all of these ratios use numbers in a firm s current assets or current liabilities quantifying the operations of the business the bottom linethe efficiency ratio typically analyzes how well a company uses its assets and liabilities internally it can calculate the turnover of receivables the repayment of liabilities the quantity and usage of equity and the general use of inventory and machinery it can also be used to track and analyze the performance of commercial and investment banks 