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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Regular review of operating ratio, defined as the relative relationship between various types of financial data, is one way to avoid such fiduciary traps.
In addition to the financial and operating ratios, statistical data covered in the survey include distribution of 2002 sales dollars, net sales/employee hours, value added per employee, net sales/production worker hours, total employment costs/net sales, production worker employment costs/net sales, total employment costs/pounds shipped, production worker employment costs/pound shipped, total production-related expenses/pound shipped, profits, and changes in net sales from 2001 to 2002.
The private motor market's combined operating ratio (COR) recorded a significant improvement, aided by premium rate increases and a reasonably mild year.
A total of 73 companies reported data for 101 plants in the SPI 2001 Financial & Operating Ratios Survey.
But even though downtown properties reported higher total actual collections and expenses than properties in the suburbs, the overall operating experience of both types of office buildings was nearly identical, as reflected in their operating ratios (net operating costs divided by total actual collections).
For the railroads, Fitch expects continued top line growth to combine with enhanced operational efficiency to drive further improvement in operating ratios (ORs) throughout 2007.
Housewares, including Linen, Bath, Kitchen and Cookware Industry, including Average EBITDA, Operating Ratios and Sales per Employee.
Luggage and Other Leather Goods Manufacturing Industry, including Average EBITDA, Operating Ratios and Sales per Employee.
SPI's annual Financial & Operating Ratios Survey, a valuable benchmarking tool for plastics processors, now is available.
economy over the past several years have given all major railroads a level of pricing power not seen in 20 years, NSC has been able to leverage its relatively fluid network to produce one of the best operating ratios in the industry.
Machine Tool and Laser Manufacturing (for Bending, Buffing, Boring, Pressing, Grinding or Forming) Industry, including Average EBITDA, Operating Ratios and Sales per Employee.
These results are materially different since Fitch's last review when FVSC had been consistently achieving very positive operating ratios and excess margins.

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