... term commonly used in finance and accounting to describe the ability of fixed costs to magnify returns to firm owners. For a manager the importance of the ratio analysis tool is to make two basic comparisons according to www.microstrategy.com. First the manager can compare a present ratio with past or expected ratios for the organization to determine if there has been improvement or deterioration or no change over time. Second the manager can take the ratios of one organization or with industry averages at the same point in time, for example in the assimilation Panorama was assessing candidates for a joint venture with two companies, Lambda TV and Coral. This type of "benchmarking" so that one may determine whether the organization is "average" in performance or doing better or worse than others as stated by www.microstrategy.com. . Efficiency Ratio The managers of Panorama have several variables to consider when ...

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