Financial ratios for Business Studies: Efficiency ratios

In Business Studies, financial ratios are an important part of the syllabus. This falls under the Finance topic in the NSW HSC Business Studies course.

In this video, we'll take a look at the concept of efficiency in Business Studies and how we measure efficiency using two financial ratios.

The two efficiency measures:
-expense ratio
-accounts receivable turnover ratio

We'll also do some practice questions to apply the ratio and understand what it means.

We're not looking at how to improve efficiency here -- we'll do that in future videos on Finance strategies.

What is efficiency (0:01)
The expense ratio (1:10)
The accounts receivable turnover ratio (5:20)

This is the HSC Business Studies syllabus:

I've sourced this information from a number of different places. I think the most important sources are:

1. Business Studies in Action (Chapman et al, any edition)

2. This Decoding HSC Business Studies book is outstanding. Fantastic info on answering specific HSC questions, including on Finance.

I've redone my website - - come take a look: