operating ratio

Definitions (2)

2. More generally, any of a number of ratios measuring a company's operating efficiency, such as sales to cost of goods sold, net profits to gross income, operating expenses to operating income, and net profit to net worth.

Use operating ratio in a sentence

You need to make sure that you break down the operating ratio and that it is something you can handle.

​ Was this Helpful? YES  NO 7 people found this helpful.

Our operating ratio was not looking too great and I wondered what it all meant for our company and our future too.

​ Was this Helpful? YES  NO 2 people found this helpful.

When looking at a transportation company to add to my portfolio I was shocked to see operating ratios of 95-99% at a lot of them.

​ Was this Helpful? YES  NO 11 people found this helpful.

Show more usage examples...

Related Terms

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
operating rate ratio