What Does Operating Ratio Mean?

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What does Operating Ratio mean? Read on to discover the definition & meaning of the term Operating Ratio - to help you better understand the language used in insurance policies.

Operating Ratio

Operating Ratio

An operating ratio is a comparison between the operating expenses of a company and its net sales. It indicates whether a company is effectively managed and how efficiently it generates profits, even in periods when revenues have dropped.

We hope the you have a better understanding of the meaning of Operating Ratio.

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