Operating Expense Ratio
Search Dictionary
Definition of 'Operating Expense Ratio'
The operating expense ratio is a financial metric that measures a company's operating expenses as a percentage of its revenue. It is calculated by dividing a company's operating expenses by its total revenue.
The operating expense ratio is a useful metric for comparing companies within the same industry, as it can help to identify companies with higher or lower operating expenses. A company with a high operating expense ratio may be less profitable than a company with a lower operating expense ratio.
The operating expense ratio can also be used to track a company's operating expenses over time. A decrease in the operating expense ratio can indicate that a company is becoming more efficient, while an increase in the operating expense ratio can indicate that a company is becoming less efficient.
The operating expense ratio is one of several financial metrics that can be used to evaluate a company's financial health. Other important metrics include the net profit margin, the return on equity, and the debt-to-equity ratio.
Here are some additional details about the operating expense ratio:
* The operating expense ratio is a profitability ratio.
* The operating expense ratio is calculated by dividing a company's operating expenses by its total revenue.
* The operating expense ratio is expressed as a percentage.
* The operating expense ratio is a useful metric for comparing companies within the same industry.
* A company with a high operating expense ratio may be less profitable than a company with a lower operating expense ratio.
* The operating expense ratio can also be used to track a company's operating expenses over time.
* The operating expense ratio is one of several financial metrics that can be used to evaluate a company's financial health.
The operating expense ratio is a useful metric for comparing companies within the same industry, as it can help to identify companies with higher or lower operating expenses. A company with a high operating expense ratio may be less profitable than a company with a lower operating expense ratio.
The operating expense ratio can also be used to track a company's operating expenses over time. A decrease in the operating expense ratio can indicate that a company is becoming more efficient, while an increase in the operating expense ratio can indicate that a company is becoming less efficient.
The operating expense ratio is one of several financial metrics that can be used to evaluate a company's financial health. Other important metrics include the net profit margin, the return on equity, and the debt-to-equity ratio.
Here are some additional details about the operating expense ratio:
* The operating expense ratio is a profitability ratio.
* The operating expense ratio is calculated by dividing a company's operating expenses by its total revenue.
* The operating expense ratio is expressed as a percentage.
* The operating expense ratio is a useful metric for comparing companies within the same industry.
* A company with a high operating expense ratio may be less profitable than a company with a lower operating expense ratio.
* The operating expense ratio can also be used to track a company's operating expenses over time.
* The operating expense ratio is one of several financial metrics that can be used to evaluate a company's financial health.
Do you have a trading or investing definition for our dictionary? Click the Create Definition link to add your own definition. You will earn 150 bonus reputation points for each definition that is accepted.
Is this definition wrong? Let us know by posting to the forum and we will correct it.
Emini Day Trading /
Daily Notes /
Forecast /
Economic Events /
Search /
Terms and Conditions /
Disclaimer /
Books /
Online Books /
Site Map /
Contact /
Privacy Policy /
Links /
About /
Day Trading Forum /
Investment Calculators /
Pivot Point Calculator /
Market Profile Generator /
Fibonacci Calculator /
Mailing List /
Advertise Here /
Articles /
Financial Terms /
Brokers /
Software /
Holidays /
Stock Split Calendar /
Mortgage Calculator /
Donate
Copyright © 2004-2023, MyPivots. All rights reserved.
Copyright © 2004-2023, MyPivots. All rights reserved.