operating expense ratio


Also found in: Acronyms.

operating expense ratio

The ratio between operating expenses and potential gross income.Such ratios will generally be similar among properties or businesses in the same geographical area with the same or similar characteristics.Knowledge of such ratios allows a developer or entrepreneur to create a pro forma estimate of future income and expenses for a new business.It also allows a property owner to conduct a reality check of its own operations,to see if its own operating expense ratios are consistent with those of other properties in the local marketplace. (An operating expense ratio that is higher than expected may be an indication of inefficiency, embezzlement, or pricing one's goods and services too cheaply.)

References in periodicals archive ?
If revenues are too low or expenses too high, consider that the operating expense ratio shows the relationship between revenues and expenses, while the expenses per resident-day index is based solely on operating expenses.
The operating expense ratio measures the steepness of a line extending from the origin (where the vertical and horizontal axes intersect) to a point on the left-side OE curve.
The combined ratio is the sum of the technical and other operating expense ratios.
If both your operating expense ratio and your expenses per resident day are above the high end of the range, take a long, hard look at your operating expenses, department by department.
Based on the Fund's current net assets of $40 million, management estimates the total operating expense ratio for 2010 to be between 1.
The underwriting and other operating expense ratio is the percentage of underwriting and other operating expenses to net premiums earned.
The underwriting and other operating expense ratio is the ratio (expressed as a percentage) of underwriting and other operating expense to net premiums earned.
The underwriting and other operating expense ratio is the ratio (expressed as a percentage) of underwriting and other operating expense to net premiums earned and measures an insurance company's operational efficiency in producing, underwriting and administering its insurance business.
The capital raised by this offering is expected to reduce the operating expense ratio in favour of the Unitholders of Central Gold-Trust.
The sale of high-end NMRs lowered gross margins, but this effect was offset by lower operating expense ratios.
Nevertheless, high operating expense ratios will continue to present a challenge.
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