This glossary uses Visual Finance™ to bring financial terms to life. Each example shows data from the Round Number Company, a fictional business with simplified figures to make learning easier. For more details, visit 'How to Read Visual Finance'.
Ratio: Operating Expense as a percentage of Sales
Example: The Round Number CompanySales = 300; OpEx = 72 OpEx Ratio = 72/ 200 = 36 % |
The OpEx Ratio measures the proportion of revenue spent on operating expenses.
The terms Operating Ratio and OpEx Ratio sound similar - but they are different measurements!
The above is our generic explanations of common corporate financial terminology. Actual meanings can vary widely from company to company; in order to have the correct internal definition you need to ask your Finance Department, "What do you mean by that?"
term list.