Operating Expense Ratio Formula

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The operating expense ratio is a measure of what it costs to operate a piece of property compared to the income that the property brings in. Check FAQs
OER=(OPEXEGI)100
OER - Operating Expense Ratio?OPEX - Operating Expense?EGI - Gross Operating Income?

Operating Expense Ratio Example

With values
With units
Only example

Here is how the Operating Expense Ratio equation looks like with Values.

Here is how the Operating Expense Ratio equation looks like with Units.

Here is how the Operating Expense Ratio equation looks like.

22.0619Edit=(1254Edit5684Edit)100
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Operating Expense Ratio Solution

Follow our step by step solution on how to calculate Operating Expense Ratio?

FIRST Step Consider the formula
OER=(OPEXEGI)100
Next Step Substitute values of Variables
OER=(12545684)100
Next Step Prepare to Evaluate
OER=(12545684)100
Next Step Evaluate
OER=22.0619282195637
LAST Step Rounding Answer
OER=22.0619

Operating Expense Ratio Formula Elements

Variables
Operating Expense Ratio
The operating expense ratio is a measure of what it costs to operate a piece of property compared to the income that the property brings in.
Symbol: OER
Measurement: NAUnit: Unitless
Note: Value can be positive or negative.
Operating Expense
Operating Expense is an expense incurred in carrying out an organization's day-to-day activities, but not directly associated with production.
Symbol: OPEX
Measurement: NAUnit: Unitless
Note: Value can be positive or negative.
Gross Operating Income
Gross Operating income is an accounting figure that measures the amount of profit realized from a business's operations, after deducting operating expenses such as cost of goods sold (COGS), wages, and depreciation.
Symbol: EGI
Measurement: NAUnit: Unitless
Note: Value can be positive or negative.

Other formulas in Important Formulas of Business category

​Go Break-Even Point
BEP=FCCM
​Go Return on Capital Employed
ROCE=(EBITTA-CL)100
​Go Solvency Ratio
SR=SF100TA
​Go Economic Order Quantity
EOQ=(2CfDemandCh)(12)

How to Evaluate Operating Expense Ratio?

Operating Expense Ratio evaluator uses Operating Expense Ratio = (Operating Expense/Gross Operating Income)*100 to evaluate the Operating Expense Ratio, The Operating Expense Ratio is a measure of what it costs to operate a piece of property compared to the income that the property brings in. Operating Expense Ratio is denoted by OER symbol.

How to evaluate Operating Expense Ratio using this online evaluator? To use this online evaluator for Operating Expense Ratio, enter Operating Expense (OPEX) & Gross Operating Income (EGI) and hit the calculate button.

FAQs on Operating Expense Ratio

What is the formula to find Operating Expense Ratio?
The formula of Operating Expense Ratio is expressed as Operating Expense Ratio = (Operating Expense/Gross Operating Income)*100. Here is an example- 22.06193 = (1254/5684)*100.
How to calculate Operating Expense Ratio?
With Operating Expense (OPEX) & Gross Operating Income (EGI) we can find Operating Expense Ratio using the formula - Operating Expense Ratio = (Operating Expense/Gross Operating Income)*100.
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