Jul 11, 2023 · Operating ratio (also referred to as operating cost ratio) is computed by dividing the total of cost of goods sold (COGS) and operating expenses by the net sales revenue for a …

What is the Operating Ratio? The operating ratio is a measure of efficiency that is used by management to determine day-to-day operational performance. This metric compares …

Apr 21, 2025 · Operating Ratio is an accounting ratio that describes the relationship between a company's cost of revenue from the operation and operating expenses to its revenue from …

In railroading, an operating ratio of 80 or lower is considered desirable. The operating ratio can be used to determine the efficiency of a company's management by comparing operating …

What is the Operating Ratio Formula? The operating ratio formula is the ratio of the company’s operating expenses to net sales. Operating expenses include administrative expenses, selling …

Feb 20, 2024 · What is Operating Ratio? The Operating Ratio measures how cost-efficient a company is by comparing its operating costs (i.e. COGS and SG&A) to its sales.

Nov 20, 2025 · Operating ratios compare the operating expenses and assets of a business to several other performance benchmarks. The intent is to determine whether the amount of …

Feb 15, 2023 · It is the comparison of an operating expense to the revenue of a business. Operating expenses could be an expense or a category of expenses like selling and …

Jan 3, 2024 · Operating ratio is an important financial metric used to evaluate the efficiency and profitability of a company. The operating Ratio measures how much it costs a company to …

Apr 11, 2025 · The operating ratio is a fundamental metric used by businesses, investors, and analysts to assess a company's operational efficiency and profitability. It is calculated by …