The Income|Outcome^® Contextuary

Ratio: Operating Expense as a percentage of Sales

Example: The Round Number Company Sales = 300; OpEx = 72 OpEx Ratio = 72/ 200 = 36 %

The OpEx Ratio measures the proportion of revenue spent on operating expenses.

“What do you mean by that?”

The terms Operating Ratio and OpEx Ratio sound similar - but they are different measurements!