operating ratios
Definition
Ratios used in expense control, and in measuring the profitability and financial soundness of a firm, by expressing each income statement item as a percentage of sales revenue. They also show the essential connections between income statement and balance sheet items. Operating ratios include operating cash flow to sales ratio, operating expenses to gross margin ratio, operating expenses to sales ratio, operating performance ratio, and hundreds such others.
operating ratios is in the Accounting & Auditing and Banking, Commerce & Finance subjects.
operating ratios appears in the definition of the following term: financial controls
This content can be found on the following page:
http://www.businessdictionary.com/definition/operating-ratios.html
email to a friend print this definition cite this definition