|
Operating Ratio
What does it mean?
A ratio that shows the efficiency of management by comparing operating expense to net sales:
In Other Words...
The smaller the ratio, the greater the organization's ability to generate profit if revenues decrease. When using this ratio, however, investors should be aware that it doesn't take into account debt repayment or expansion.
Related Links
Doing More with Less: the Sales-per-Employee Ratio - If used properly, this ratio can give you insight into a company's productivity and financial health.
Related Terms
Net Sales | Operating Expense | Profit Margin
1 |
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
|
