# Operating Ratio

Operating ratio is the ratio of cost of goods sold plus operating expenses to net sales. Operating Ratio is generally expressed in percentage. Operating Ratio is calculated by a formula that is Operating Ratio is equal to operating expense by sales.

## Operating Ratio

Definition: Operating ratio is the ratio of cost of goods sold plus operating expenses to net sales. It is generally expressed in percentage. Operating ratio measures the cost of operations per dollar of sales. This is closely related to the ratio of operating profit