Operating Expense Ratio | Finance Terms | Mastering Money |

"Unlock the insights into the operating expense ratio in this informative video. Join us as we explore the significance of the operating expense ratio in assessing a company's cost management and operational efficiency. Discover how the operating expense ratio provides valuable insights into the proportion of revenue allocated to operating expenses.

In this concise video, we explain what the operating expense ratio is and how it is calculated. Learn about the formula used to compute the operating expense ratio, which involves dividing the operating expenses by the net sales or revenue. Understand how the operating expense ratio reflects the percentage of revenue consumed by operating costs.

Gain valuable insights into interpreting and analyzing the operating expense ratio. Explore how the operating expense ratio can vary across industries and company sizes and how it can be used for comparative analysis. Understand the relationship between the operating expense ratio, gross profit margin, and net profit margin.

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