An efficiency ratio is not just a percentage, it's actually the management efficiency ratio. This measurement actually shows whether a business is being managed well or not. Because it shows if a company is using its capital efficiently or not. So this is not just about how much turnover a company is making. It's not enough to be making a profit. The company should be making the most profit possible, using the least capital possible. That's efficiency. If a company is not being operated at this level, it simply isn't being managed well. So the head of a company can and should make a call about its managers by looking at efficiency ratios.