operating ratio Definition

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operating ratio

Definition 1

A company's operating expenses divided by its operating revenues.

Definition 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.

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Related terms:

ratio

'operating ratio' appears in the definitions of these other terms on BusinessDictionary.com:

financial controls, operating ratios

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