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Operating Ratio

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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.

operating ratio
A financial ratio that measures the portion of revenue going to operating expenses.


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Chief executive Andy Haste said he expects the group to deliver a COR - combined operating ratio, representing the amount of money spent on claims and costs for every pounds 1 of premiums taken - of around 95% for the full year.
18 Kyodo Japan's key gauge of the current state of the economy in June was revised up slightly, reflecting improvements in production-related indicators such as manufacturers' capacity operating ratio and their extra working hours, the government said Tuesday.
The group's combined operating ratio - an industry measure of claims and costs as a percentage of premiums, where anything below 100% is a profit - rose to 97.
 
 
 
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