Examples of net production efficiency (NPE) in the following topics:
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- Energy is lost as it is transferred between trophic levels; the efficiency of this energy transfer is measured by NPE and TLTE.
- Another main parameter that is important in characterizing energy flow within an ecosystem is the net production efficiency.
- Net production efficiency (NPE) allows ecologists to quantify how efficiently organisms of a particular trophic level incorporate the energy they receive into biomass.
- Net consumer productivity is the energy content available to the organisms of the next trophic level.
- Thus, NPE measures how efficiently each trophic level uses and incorporates the energy from its food into biomass to fuel the next trophic level.
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- Temperature and moisture are important influences on plant production (primary productivity) and the amount of organic matter available as food (net primary productivity).
- Net primary productivity is an estimation of all of the organic matter available as food.
- Net primary productivity is an important variable when considering differences in biomes.
- Environments with the greatest amount of biomass have conditions in which photosynthesis, plant growth, and the resulting net primary productivity are optimized.
- Photosynthesis can proceed at a high rate, enzymes can work most efficiently, and stomata can remain open without the risk of excessive transpiration.
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- Total asset turnover is a financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue.
- Total assets turnover = Net sales revenue / Average total assets
- "Sales" is the value of "Net Sales" or "Sales" from the company's income statement".
- In bookkeeping, accounting, and finance, Net sales are operating revenues earned by a company for selling its products or rendering its services.
- Asset turnover measures the efficiency of a company's use of its assets in generating sales revenue or sales income to the company.
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- The Coase theorem states that private parties can find efficient solutions to externalities without government intervention.
- The farmer has an incentive to bargain with the rancher to find a more efficient solution.
- In response, the Jones family can put up a net that will prevent pears from falling on the Smith's side of the property line, eliminating the externality.
- Both parties will be better off if they can agree to the second scenario, as the Smith family will continue to enjoy pears and the Jones family can increase the production of pears.
- According to the Coase theorem, two private parties will be able to bargain with each other and find an efficient solution to an externality problem.
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- ROE is the ratio of net income to equity.
- From the fundamental equation of accounting, we know that equity equals net assets minus net liabilities.
- In essence, ROE measures how efficient the company is at generating profits from the funds invested in it.
- ROE is the product of the net margin (profit margin), asset turnover, and financial leverage.
- Also note that the product of net margin and asset turnover is return on assets, so ROE is ROA times financial leverage.
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- Ratio analysis is used in finance and accounting to determine how a company is performing financially compared with other companies; efficiency and other production metrics may also be assessed.
- These can include profitability ratios, efficiency ratios, activity ratios, and debt ratios.
- Other efficiency ratios that the project management team may consider include staff productivity levels, the number of activities completed in a set period, and expenses in relation to productivity.
- The goal of process control is increased efficiency; ratio analysis uses a wide variety of point in similar projects as benchmarks to denote where efficiency can be enhanced, and underlines differences in profitability and efficiency that may sway resource allocation for the organization in the future.
- The operating margin is found by dividing net operating income by total revenue.
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- Free trade is a policy where governments do not discriminate against imports and exports; creates a large net gain for society.
- It is economically efficient for a good to be produced in the country with the lowest production costs.
- When free trade is applied to only the high cost producer it can lead to trade diversion to not the most efficient producer, but the one facing the lowest trade barriers, and a net economic loss.
- Free trade is highly effective and provides society with a net gain, but only if it is applied.
- Free trade does not have tariffs and results in net gain for society.
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- Income statement (also referred to as profit and loss statement (P&L), revenue statement, statement of financial performance, earnings statement, operating statement or statement of operations) is a company's financial statement that indicates how the revenue (money received from the sale of products and services before expenses are taken out, also known as the "top line") is transformed into the net income (the result after all revenues and expenses have been accounted for, also known as Net Profit or the "bottom line").
- In business, net income also referred to as the bottom line, net profit, or net earnings is an entity's income minus expenses for an accounting period.
- Earnings per Share = (Net Income - Preferred Dividends) / Shares of Stock Outstanding
- The operating ratio can be used to determine the efficiency of a company's management by comparing operating expenses to net sales.
- It is calculated by dividing the operating expenses by the net sales.
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- Activity ratios (or efficiency ratios) are used to measure the effectiveness of a firm's use of resources .
- A shorter collection period is an indicator of more liquidity and increased efficiency.
- Fixed asset turnover = Net sales / Average Net Fixed Assets
- A low turnover rate may point to overstocking, obsolescence, or deficiencies in the product line or marketing effort.
- Explain the ways to use activity ratios to measure a firm's efficiency
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- The classical view of management tends to focus on the efficiency and productivity of workers rather than on workers' human needs.
- This dissatisfaction undoes the value captured via increased efficiency.
- The net benefit to owners and management ended up being small or negative.
- The behavioral approach to management took an entirely different approach and focused on managing morale, leadership, and other behavioral factors to encourage productivity rather than solely managing the time and efficiency of workers.
- The onus of enabling efficiency, therefore, shifts from workers to managers.