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Home >> Investor Resources >> Financial Statements >> Operating Ratio

Operating Ratio

These metrics are designed to measure the operating efficiency of a company. Generally, the operating ratio is determined by calculating expense s and revenues. These figures are related against items on the balance sheet to determine how well a company is run.

Examples of Operatio Ratio determinations:

  • Gross margin to net profit
  • Operating income to operating expenses
  • Gross profit to net income
  • Net worth to net income

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