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Operating Ratios

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Operating ratios
Ratios that measures a firm's operating efficiency. Examples include profit margin, and sales to assets.

Operating Ratio
A ratio of a company's operating expenses to its sales or revenue. A lower operating ratio is considered ideal because it indicates that, in the event of a decline in sales or revenue, a company will maintain profitability. Most firms desire an operating ratio below 0.80.


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The preceding disclosures contain references to 'reported' and 'adjusted' operating income and operating ratios.
Volume one, based on the original publication, provides the key operating ratios that association financial professionals have been relying on for decades; while volume two offers a wide range of new financial data that have never been collected by ASAE.
ABF's operating ratio was one of its best first-quarter operating ratios in the last 25 years.
 
 
 
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