Operating ratio

The Operating ratio is a financial term defined as a company's operating expenses as a percentage of revenue.

Operating Ratio
A ratio that shows the efficiency of a company's management by comparing operating expense to net sales. Calculated as:
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Operating ratio
A ratio that measures a firm's operating efficiency.
Operating in the red
Doing business while losing money.

Operating ratio
An operating ratio is equal to the operating expenses divided by the operating revenue. The operating ratio is intended to measure operating efficiency.

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.

See also: Rating, Ratio, Profit, Expenses, Revenue