Operating Ratio

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Operating ratio
The operating ratio is a financial term defined as a company's operating expenses as a percentage of revenue. This financial ratio is most commonly used for industries such as railroads which require a large percentage of revenues to maintain operations. In railroading, an operating ratio of 80 or lower is considered desirable.
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Campbell R. Harvey's Hypertextual Finance DictionaryDownload this dictionary
Operating ratio
A ratio that measures a firm's operating efficiency.

Copyright © 2000, Campbell R. Harvey. All Rights Reserved.
BTS Transportation Expressions DictionaryDownload this dictionary
Operating Ratio
The ratio of operating expenses to operating revenues. (AAR1)

By the Bureau of Transportation Statistics.

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