Operating Ratios

Posted in Finance, Accounting and Economics Terms, Total Reads: 882

Definition: Operating Ratios

Ratios used in expense control, and in measuring the profitability and financial soundness of a firm, by expressing each operating statement item as a percentage of sales revenue.

The smaller the ratio, the greater the organization's ability to generate profit if revenues decrease

Examples: -

  • Operating expenses to sales ratio
  • Operating cash flow to sales ratio
  • Operating performance ratio

Search & Explore : Management Dictionary

Browse definitions and meaning of more concepts and terms similar to Operating Ratios. The Management Dictionary covers definitions and overview of over 7000 business concepts from 6 categories.

Share this Page on:

Similar Definitions from same Category: