operating ratio


Also found in: Encyclopedia, Wikipedia.

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.
Mentioned in ?
References in periodicals archive ?
The insurer's group combined operating ratio decreased to 92.5% in the first half from 92.9% the year before.
Despite the seemingly dark clouds, Union minister Piyush Goyal, in his interim budget speech, was hopeful and said that operating ratio of the railways is set to improve from 98.4 in 2017-18 to 96.2 in 2018-19 and to 95 in 2019.
This is compared with the company's prior expectations of a sequential improvement from the 95.7% adjusted operating ratio generated in the first quarter of 2019.
It said it was targeting a combined operating ratio of 93%-95% for 2019 and is aiming to make further progress on slashing costs below PS700m.
Conversely, if EHM OG sustains a favorable operating ratio and improves liquidity materially, upward rating movement may be warranted.
The average operating ratio across all years in this study is 1.20, which is relatively consistent from 2011 to 2013.
Indian Railways is in a constant endeavour to bring down the operating ratio by controlling expenditure and increasing revenues.
COR - the combined operating ratio - shows claims and expenses as a percentage of premium income where anything below 100% means a profit.
Consistent with other G2 Technology discs such as the AXIUS[R] and AXIUS[R] SC, the benefits of the ATLAS rupture disc include a 95% operating ratio, liquid or vapor service, back pressure resistance and unrivaled cycling capability.
Toyota intends to resume production on Monday following the eight-day holiday, but will keep its factory operating ratio low, the sources said.
The rise is due to the good performance of the net banking output as well as to the improvement in the operating ratio which decreased by 1.2 point to 46.3%, the report said.

Full browser ?