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 specific period.

Guide to Operating Ratio Formula. Here we discuss the formula to calculate operating ratio along with examples and downloadable excel template.

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 operating expenses, also …

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 operations.

The operating ratio can be used to determine the efficiency of a company's management by comparing operating expenses to net sales. It is calculated by dividing the operating expenses by the net sales.

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 operating …

Apr 23, 2025 · The OER measures what it costs to operate a property against its income, while the operating ratio focuses on comparing total expenses to net sales across various industries. Both …

Nov 21, 2025 · Also known as operating cost ratio or operating expense ratio, the operating ratio compares operating expenses to net sales. It's a common metric companies use to determine how …

Jan 3, 2024 · Learn about Operating Ratio: A detailed guide on its definition, uses, formula, components, calculation method, and limitations in business analysis.