Operating Expenses to Revenue
The financial metric "Operating Expenses to Revenue" (also known as Operating Expense Ratio or OER) is a measure of a company's operating efficiency. It is calculated by dividing a company's operating expenses by its revenue. Operating expenses include all expenses related to the production and sale of goods or services, such as wages, rent, utilities, and supplies.
The formula for Operating Expenses to Revenue is:
Operating Expenses / Revenue * 100
The result is expressed as a percentage. Generally, a lower percentage indicates better operating efficiency, as the company is able to generate more revenue with lower operating expenses. However, it is important to consider the industry and stage of the company when interpreting OER.
Additional Details
Metric Name | Type | Default Period Type |
---|---|---|
opex_to_revenue | fin_metric | FY |
Formatting Details
Data Format | Display Format | Unit |
---|---|---|
float | perc | percentage |