Operating Ratio

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Dictionary Says

Definition of 'Operating Ratio'

A ratio that shows the efficiency of a company's management by comparing operating expense to net sales. Calculated as:

Operating Ratio
Investopedia Says

Investopedia explains 'Operating Ratio'

The smaller the ratio, the greater the organization's ability to generate profit if revenues decrease. When using this ratio, however, investors should be aware that it doesn't take debt repayment or expansion into account.

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'Operating Ratio'

  • CSX Opens The Throttle

    http://stocks.investopedia.com/stock-analysis/2011/CSX-Opens-The-Throttle-CSX-UNP-KSU-NSC-CNI-CP0202.aspx
    ... basis. The company decreased its operating ratio to 70% from 75%. This quarter ...
    2009. Annual operating ratio was 71.1%. The automotive ...

  • Union Pacific Roars Down The Tracks

    http://stocks.investopedia.com/stock-analysis/2011/Union-Pacific-Roars-Down-The-Tracks-UNP-CNI-KSU-CSX-NSC0126.aspx
    ... A key measure for rails is operating ratio - the lower the better. ... For the year,
    the operating ratio fell from 76.1% in the previous year to 70.1% in 2010. ...

  • Cash Flow Indicator Ratios: Operating Cash Flow/Sales Ratio ...

    http://www.investopedia.com/university/ratios/cash-flow-indicator/ratio1.asp
    Cash Flow Indicator Ratios: Operating Cash Flow/Sales Ratio. ... Next: Cash Flow Indicator
    Ratios: Free Cash Flow/Operating Cash Flow Ratio ยป. Table of Contents. ...

  • Railways Prepare To Announce Earnings

    http://stocks.investopedia.com/stock-analysis/2010/Railways-Prepare-To-Announce-Earnings-AA-CSX-UNP-CNI-NSC-KSU-CP0712.aspx
    ... saw a 22% increase in EPS from continuing operations compared to the same 2009 period
    in addition to a record first-quarter operating income and operating ratio ...

  • Cash Flow Indicator Ratios: Free Cash Flow/Operating Cash Flow ...

    http://www.investopedia.com/university/ratios/cash-flow-indicator/ratio2.asp
    Cash Flow Indicator Ratios: Free Cash Flow/Operating Cash Flow Ratio. ... cash flow ratio
    measures the relationship between free cash flow and operating cash flow. ...

  • Pricing Is Strong At CSX

    http://stocks.investopedia.com/stock-analysis/2011/Pricing-Is-Strong-At-CSX-CSX-UNP-NSC-ACI-PVR-JBHT-HUBG1021.aspx
    ... That pressured the company's operating ratio (basically the inverse of operating
    margin) down about 130 basis points (back above 70), and operating income rose ...

  • A Tail Of Two Railroads

    http://stocks.investopedia.com/stock-analysis/2011/A-Tail-Of-Two-Railroads-CP-CNI-NSC-UNP0622.aspx
    ... National Overview CN had a solid first quarter, as revenues increased by 9% to $2.1
    billion, and its operating ratio improved by 30 basis points to 69.0%. ...

  • Arkansas Best Isn't The Best, But Is It This Bad?

    http://stocks.investopedia.com/stock-analysis/2012/Arkansas-Best-Isnt-The-Best-But-Is-It-This-Bad-ABFS-ODFL-FDX-SWFT0203.aspx
    ... The company's operating ratio did improve 140 basis points and was in the black,
    but was still pretty well shy of most analyst expectations. ...

  • A Primer On The Railroad Sector

    http://www.investopedia.com/articles/stocks/11/primer-on-railroad-sector.asp
    ... that bear additional scrutiny. The operating ratio is a major measure of
    profitability in the railroad industry. There is really ...

  • Debt Ratios: Cash Flow To Debt Ratio | Investopedia

    http://www.investopedia.com/university/ratios/debt/ratio6.asp
    ... By Richard Loth (Contact | Biography) This coverage ratio compares a company's
    operating cash flow to its total debt, which, for purposes of this ratio, is ...

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