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Investments glossary

Operating Ratio

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Quotes of the day:

Old is gold, but new is platinum.

— Amit

The operating ratio shows the efficiency of a company’s management by comparing the total operating expense (OPEX) of a company to net sales. The operating ratio shows how efficient a company’s management is at keeping costs low while generating revenue or sales. The smaller the ratio, the more efficient the company is at generating revenue vs. total expenses.


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