operating ratio any of a group of ratios that measure a firm's operating efficiency and effectiveness by relating various income and expense figures from the profit and loss statement to each other and to balance sheet figures.
Operating ratio A ratio that measures a firm's operating efficiency. Operating risk ...
OPERATING RATIO (OR or O/R) Comparison of carrier's operating expenses with gross receipts; income divided by expenses. OVER, SHORT AND DAMAGED (OS&D) ...
Operating Ratio (IRIS) - Combined ratio less the net investment income ratio (net investment income to net premiums earned). The operating ratio measures a company's overall operational profitability from underwriting and investment activities.
Operating ratio - Is calculated by company operating expenses divided by its operating revenues. It is a measure of a firm's operating efficiency ...
Operating Ratio, Price/Book Ratio, Price/Earning Ratio, Yield, Yield To Call, and Yield To Maturity. FIRST-YEAR COMMISSIONS The commission payment made to an insurance agent that is based on the premiums paid in the policy's first year.
Operating Ratio A ratio that shows the efficiency of a company's management by comparing operating expense to net sales. Calculated as: ...
Operating Ratio In P&C insurance, a measure of the overall profitability the insurer. The operating ratio is the combined ratio minus the investment ratio. OTC ...
Combined operating ratio A financial measure of insurance underwriting profitability that expresses the total of claim costs, commission and expenses as a percentage of premiums. Commission ...
Efficiency and Operating Ratios Calculations The efficiency ratio is defined as operating overhead expenses divided by fee income plus tax equivalent net interest income.
Operating ratios Ratios that measures a firm's operating efficiency. Examples include profit margin, and sales to assets. Operating in the red Doing business while losing money.
operating ratio A firm's operating expenses as a ratio of its operating revenues. operating surplus An estimated measure of a firm's operating cash flow based on data from the... operation A unit or function within a firm.
The percentage of total production capacity of a company, industry, or country that is being used. Operating ratio A ratio that measures a firm's operating efficiency. Operating in the red ...
A successful business will continually analyze its costs by using operating ratios. This ensures that all areas remain profitable and allows owners to make adjustments to product lines that report sluggish gains.
See also: Expense, Net sales, Operating costs, Outsourcing, Profit margin
 
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