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5 Highly Efficient Stocks with Strong Financial Performance
The efficiency ratio is a key indicator of a company's overall financial health and operational performance. It evaluates how effectively management controls operating costs while generating revenues. The ratio also reflects how efficiently a business utilizes its assets and manages liabilities. A stronger efficiency ratio generally indicates better cost control, effective resource allocation, and the ability to maximize revenues while reducing unnecessary operating expenses.
However, at times, it becomes difficult to measure the efficiency level of a company. This is why one must consider the popular efficiency ratios listed below while selecting stocks.
Polaris, Intrepid Potash, Interface, NetScout Systems and Acme United have made it through the screen process:
Efficiency Ratios – to be Considered
Receivables Turnover: This is the ratio of 12-month sales to four-quarter average receivables. It shows a company's potential to extend its credit and collect debt in terms of that credit. A high receivables turnover ratio, or the "accounts receivable turnover ratio" or "debtor's turnover ratio," is desirable as it shows that the company is capable of collecting its accounts receivables or that it has quality customers.
Asset Utilization: This ratio indicates a company's capability to convert assets into output and is thus a widely known measure of efficiency level. It is calculated by dividing total sales over the past 12 months by the last four-quarter average of total assets. Like the above ratios, high asset utilization may indicate that a company is efficient.
Inventory Turnover: The ratio of the 12-month cost of goods sold (COGS) to a four-quarter average inventory is considered one of the most popular efficiency ratios. It indicates a company's ability to maintain a suitable inventory position. While a high value indicates that the company has a relatively low level of inventory compared to COGS, a low value indicates that the company is facing declining sales, which has resulted in excess inventory.
Operating Margin: This efficiency measure is the ratio of operating income over the past 12 months to sales over the same period. It measures a company's ability to control operating expenses. Hence, a high value of the ratio may indicate that the company manages its operating expenses more efficiently than its peers.
Here are the top five stocks that made it through the screen:
Polaris
Polaris designs, engineers and manufactures off-road and on-road vehicles. PII has an average four-quarter earnings surprise of 82.6%.
Intrepid Potash
Intrepid Potash is the largest producer of potash in the United States and is dedicated to the production and marketing of potash and langbeinite, another mineral containing potassium. IPI has an average four-quarter earnings surprise of 37.4%.
Interface
Interface is the world's largest manufacturer of modular carpet, which it markets under the Interface and FLOR brands. TILE has an average four-quarter earnings surprise of 29.8%.
NetScout Systems
NetScout Systems is a leading provider of business assurance — a powerful combination of service assurance, cybersecurity, and business intelligence solutions — for today's most demanding service provider, enterprise and government networks. NTCT has an average four-quarter earnings surprise of 25.1%.
Acme United
Acme Unitedsupplies cutting, measuring, first aid, and sharpening products to the school, home, office, hardware, sporting goods, and industrial markets in the United States, Canada, Europe, and internationally. ACU has an average four-quarter earnings surprise of 17.7%.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
View the Zacks #1 Rank List
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Zacks.com featured highlights include Polaris, Intrepid Potash, Interface, NetScout Systems and Acme United
For Immediate Release
Chicago, IL – September 4, 2026 – Stocks in this week’s article are Polaris (PII - Free Report) , Intrepid Potash (IPI - Free Report) , Interface (TILE - Free Report) , NetScout Systems (NTCT - Free Report) and Acme United (ACU - Free Report) .
5 Highly Efficient Stocks with Strong Financial Performance
The efficiency ratio is a key indicator of a company's overall financial health and operational performance. It evaluates how effectively management controls operating costs while generating revenues. The ratio also reflects how efficiently a business utilizes its assets and manages liabilities. A stronger efficiency ratio generally indicates better cost control, effective resource allocation, and the ability to maximize revenues while reducing unnecessary operating expenses.
However, at times, it becomes difficult to measure the efficiency level of a company. This is why one must consider the popular efficiency ratios listed below while selecting stocks.
Polaris, Intrepid Potash, Interface, NetScout Systems and Acme United have made it through the screen process:
Efficiency Ratios – to be Considered
Receivables Turnover: This is the ratio of 12-month sales to four-quarter average receivables. It shows a company's potential to extend its credit and collect debt in terms of that credit. A high receivables turnover ratio, or the "accounts receivable turnover ratio" or "debtor's turnover ratio," is desirable as it shows that the company is capable of collecting its accounts receivables or that it has quality customers.
Asset Utilization: This ratio indicates a company's capability to convert assets into output and is thus a widely known measure of efficiency level. It is calculated by dividing total sales over the past 12 months by the last four-quarter average of total assets. Like the above ratios, high asset utilization may indicate that a company is efficient.
Inventory Turnover: The ratio of the 12-month cost of goods sold (COGS) to a four-quarter average inventory is considered one of the most popular efficiency ratios. It indicates a company's ability to maintain a suitable inventory position. While a high value indicates that the company has a relatively low level of inventory compared to COGS, a low value indicates that the company is facing declining sales, which has resulted in excess inventory.
Operating Margin: This efficiency measure is the ratio of operating income over the past 12 months to sales over the same period. It measures a company's ability to control operating expenses. Hence, a high value of the ratio may indicate that the company manages its operating expenses more efficiently than its peers.
Here are the top five stocks that made it through the screen:
Polaris
Polaris designs, engineers and manufactures off-road and on-road vehicles. PII has an average four-quarter earnings surprise of 82.6%.
Intrepid Potash
Intrepid Potash is the largest producer of potash in the United States and is dedicated to the production and marketing of potash and langbeinite, another mineral containing potassium. IPI has an average four-quarter earnings surprise of 37.4%.
Interface
Interface is the world's largest manufacturer of modular carpet, which it markets under the Interface and FLOR brands. TILE has an average four-quarter earnings surprise of 29.8%.
NetScout Systems
NetScout Systems is a leading provider of business assurance — a powerful combination of service assurance, cybersecurity, and business intelligence solutions — for today's most demanding service provider, enterprise and government networks. NTCT has an average four-quarter earnings surprise of 25.1%.
Acme United
Acme Unitedsupplies cutting, measuring, first aid, and sharpening products to the school, home, office, hardware, sporting goods, and industrial markets in the United States, Canada, Europe, and internationally. ACU has an average four-quarter earnings surprise of 17.7%.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2984430/5-high-efficient-stocks-with-strong-financial-performance
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com
Visit: https://www.zacks.com/
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.