Working Ratio

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Working Ratio

A measure of a company's ability to recover its operating expenses from its gross income in a given year. It is calculated by taking the company's total expenses, except for depreciation and debt service, and dividing them by its gross income. A ratio under 1 indicates that the company is recovering its expenses and therefore has a certain amount of financial health, while a ratio over 1 indicates the opposite.
References in periodicals archive ?
As with the majority of the mathematics of Ancient Greece, Archimedes' work was based upon geometric working ratios and area, rather than the algebraic definitions with which we are familiar.