What Is an Operating Expense Ratio?

The operating expense ratio refers to the proportion of various expenses required to engage in business activities in operating income.

Operating expense ratio

Right!

The operating expense ratio refers to the proportion of various expenses required to engage in business activities in operating income.

Operating expense ratio formula

Operating expense ratio = Operating expenses / Operating income × 100%

The lower this indicator, the smaller the expenses and expenses in the business process, and the higher the profit level. The reference standard for operating expense ratios is 14% to 16%.