Based in Stamford, Connecticut, Scott Herckis serves as CEO of SJH Financial, where he provides financial services to small- and medium-sized businesses. Scott has also managed numerous objectives while achieving rigorous deadlines and shown inventiveness, which has resulted in process and technology improvements and efficiency.

Operational efficiency is a metric that evaluates how effectively a business uses its resources. Profits are lower, and growth is slower when there is a lack of operational efficiency. The more profitable a company or investment is, the more efficient its operations are. This is because the entity may create more income or returns for the same or less money than a competitor. Accounts receivable turnover and inventory turnover are two essential operational efficiency indicators.

Net credit sales are divided by average accounts receivable to determine accounts receivable turnover. This metric determines how well a business manages the credit it provides to customers. A high score indicates that the business is managing credit properly. A low score means that the business needs to improve in this area.

The cost of goods sold is divided by average inventory to determine inventory turnover. This metric assesses how well a business handles its inventories. A low value indicates that the business is not turning its inventory often enough. A high number means the inventory is turning quickly.