Operating Ratio Definition & Example | InvestingAnswers
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WEBOct 26, 2020 · Operating Ratio = Operating Expenses / Net Sales. It is often expressed as a percentage. To see how operating margin works, consider Company XYZ's income statement: Using this information and the formula above, we can calculate that Company XYZ's operating ratio is: Operating Ratio = $850,000 / $1,000,000 = 0.85 or 85%.
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