ZACKSยท2025-11-07 14:40Core Insights - The article emphasizes the importance of efficiency ratios as indicators of a company's financial health and operational efficiency [1] Efficiency Ratios - Receivables Turnover: This ratio measures a company's ability to extend credit and collect debts, with a higher ratio indicating better performance [2] - Asset Utilization: This ratio assesses how effectively a company converts its assets into sales, with higher values suggesting greater efficiency [3] - Inventory Turnover: This ratio indicates a company's ability to manage inventory relative to its cost of goods sold, with higher values reflecting better inventory management [4] - Operating Margin: This ratio measures the efficiency of a company in controlling operating expenses relative to sales, with higher values indicating better expense management [5] Screening Criteria - The screening process identified stocks with efficiency ratios above industry averages, narrowing down from over 7,906 stocks to 11 [7] - Stocks that met Zacks' criteria for superior efficiency ratios and a Strong Buy rank include Indivior, Proto Labs, Las Vegas Sands, and Oceaneering International, all of which posted double-digit average earnings surprises [8] Company Profiles - Indivior (INDV): A specialty pharmaceutical company focused on treatments for addiction and related conditions, with a four-quarter average positive earnings surprise of 68% [9] - Proto Labs (PRLB): An online manufacturer of custom parts for prototyping, with an average four-quarter positive earnings surprise of 18.6% [10] - Las Vegas Sands (LVS): A leading developer of integrated resorts, primarily in the U.S. and Asia, with a four-quarter average positive earnings surprise of 14.5% [11] - Oceaneering International (OII): A supplier of offshore equipment and technology solutions to the energy sector, with a four-quarter average positive earnings surprise of 12.3% [12]