Efficiency metrics

The search results provide good candidates for external links.

• History/Origin: Horrigan, J.O. (1968) "A Short History of Financial Ratio Analysis." The Accounting Review.³⁵,³⁴ (JSTOR link is paywalled, but the SCIRP link³³ provides a reference and abstract, and a WordPress.com link³² refers to the JSTOR article). A better approach would be to cite the general historical context of financial ratio analysis, which many sources mention as emerging in the late 19th and early 20th centuries, primarily for credit analysis.³¹,³⁰ The paper "Financial Ratio Analysis: A Theoretical Study"²⁹ gives a broader overview of the history. I'll use the idea that financial ratio analysis gained prominence in the early 20th century for credit analysis. I'll use a reliable source that mentions this. Search result²⁸ provides a good summary without a paywall.

  • External Link 1 (History): Rajeswari, S., & Rajamohan, S. (2013). Financial Ratio Analysis: A Theoretical Study. Research Journal of Management Sciences, 2(4), 16-19. (Found via²⁷, the journal itself is "Research and Analysis International Journal of Management, Technology & Social Sciences" or similar, I'll verify the exact link.)
  • Self-correction: The direct paper isn't easily found with a simple search for a direct link to the full paper, only the abstract or re-hosted versions. I need a more directly accessible and stable link. I'll re-search for general history of financial analysis.

• Practical Applications (SEC): The SEC requires public companies to file financial reports (10-K, 10-Q) which contain the data used for financial ratios.²⁶,²⁵ This is highly relevant.

  • External Link 2 (Practical Application): SEC.gov (specifically the Financial Reporting Manual or general SEC filings info). The "A Practical Guide to SEC Financial Reporting - Ravix Group"²⁴ is a good summary of what the SEC requires. I'll try to find a direct SEC.gov link about financial reporting or requirements. The SEC Financial Reporting Manual²³ looks good.
  • Self-correction: The Financial Reporting Manual on SEC.gov is a very dense internal document. A more general page about SEC filings or investor education about financial statements would be more reader-friendly. I will look for SEC.gov "Understanding financial statements" or "How to read financial reports".

• Limitations/Criticisms: Multiple sources discuss limitations like historical data, qualitative factors, and manipulation.²²,²¹,²⁰,,¹⁹

  • External Link 3 (Limitations): Corporate Finance Institute has a good, accessible article on "Limitations of Ratio Analysis".¹⁸ Hero Vired¹⁷ also has a good summary. I'll use Corporate Finance Institute, as it's a common and reliable financial education site.

• General/Core Data (Productivity): Federal Reserve Banks frequently publish on productivity, which is a key efficiency metric at macro level. The Federal Reserve Bank of St. Louis FRED data¹⁶ is a good source for labor productivity data. Also the FRBSF Economic Letter on Productivity¹⁵.

  • External Link 4 (Productivity Data): Federal Reserve Bank of St. Louis FRED data for "Labor Productivity (Output per Hour)".¹⁴ This is a direct, live, and highly relevant data source.

Let's refine External Links 1 and 2 to ensure they are the best fit.

Re-evaluating External Link 1 (History):
The Horrigan (1968) paper is foundational but often behind a paywall. I need a more universally accessible and verifiable source for the historical context.
Let's search for "history of financial analysis early 20th century" or "evolution of financial ratios public domain".
I found that the book "Financial Statement Analysis" by Leopold A. Bernstein, first published in 1974, discusses the history. However, I need an online, publicly accessible source.
Many sources point to the early 20th century, particularly driven by credit analysis and the rise of large corporations.
Let's try: "early development of financial ratio analysis" with domains like .edu or .org if possible.
If I cannot find a specific event with a strong link, I can generalize that the systematic use of financial ratios became prominent in the early 20th century to aid credit analysis and investment decisions, and then reference a general concept page from a reputable source if needed.

Self-correction: I need to make sure all 4 links are strong. For history, a specific publication or institution introducing the concept would be ideal.
The Corporate Finance Institute¹³ and Investopedia themselves state that ratio analysis is a method of analyzing operational efficiency. So, I can cite them for what efficiency metrics are, and their limitations.
For history, it's harder to pinpoint a single, widely accessible, historical source. Many texts refer to Alexander Wall and James Moultrie.

Let's stick to concrete, verifiable links. If a strong historical academic paper isn't easily accessible and free, I might pivot to something else for that slot, or use one of the existing links for history if it naturally fits.

Let's go back to the idea of efficiency metrics being used in financial analysis.

1. History: Many sources mention the early 20th century for the formalization of ratio analysis, with pioneers like Alexander Wall. I can reference a general finance resource that summarizes this. For instance, the general context provided by Investopedia on financial ratio analysis could implicitly cover this in an introduction, but it's not a historical source itself. Instead, I can use the search result¹² "Financial Ratio Analysis: A Theoretical Study" which states: "The first time financial statement analysis was done by American industries in Nineteenth Century to comparison of financial results have two purposes. There was much overlap, the development path of ratio analysis for creditor purposes and for managerial purposes were different. Credit analysis emphasized measures of ability to pay whereas managerial analysis emphasized profitability measures." And also "In 1930, there were two significant developments...In 1933, Foulken identified fourteen ratios..."¹¹ This paper is openly available and appears verifiable.

   • External Link 1 (History): https://raijmr.com/wp-content/uploads/2017/04/RAIJMR_2210.pdf - This is the direct PDF link to "Financial Ratio Analysis: A Theoretical Study"¹⁰. This looks good.

2. Practical Applications (SEC): Instead of the dense SEC manual, a more accessible page explaining SEC reporting.

   • External Link 2 (Practical Application): The Ravix Group article "A Practical Guide to SEC Financial Reporting"⁹ clearly states what SEC filings are and why they're important for financial reporting. This is a third-party source but accurately describes SEC requirements and is readable. I need 3 different trusted domains, so this would be domain 1 (Ravix Group).

3. Limitations/Criticisms:

   • External Link 3 (Limitations): Corporate Finance Institute: https://corporatefinanceinstitute.com/resources/knowledge/finance/limitations-of-ratio-analysis/⁸. This is domain 2 (Corporate Finance Institute).

4. General/Core Data (Productivity):

   • External Link 4 (Productivity Data): Federal Reserve Bank of St. Louis (FRED): https://fred.stlouisfed.org/series/OPHNFB⁷. This is domain 3 (FRED/St. Louis Fed).

Okay, the external links look solid now:

1. Academic paper (open access PDF)
2. Financial advisory firm blog explaining SEC reporting (real company, clear info)
3. Educational finance resource (CFI)
4. Federal Reserve data portal

This satisfies the "at least 3 different trusted domains" rule.

Now, proceed with writing the article.

¹²³⁴⁵⁶