Red-run route - Akajirosen

...It is a ratio to measure the profitability of the business activities of the entire company or each division of the company, and is also called the operating income ratio or operating ratio. It is calculated as follows. It shows how much operating expenses such as cost of sales, selling and general administrative expenses, and financial expenses (see the section on operating profit) are spent to obtain operating income such as sales of 100, so when the operating ratio exceeds 100, from an economic point of view, the activity should not be carried out. This ratio has traditionally been used frequently in the railway industry, and is calculated separately for passengers and freight, or by line. ...

*Some of the terminology used to refer to "red-run routes" is listed below.

Source | Heibonsha World Encyclopedia 2nd Edition | Information

…企業全体あるいはその各部門の営業活動の採算性をみるための比率で，営業収支比率，営業比率ともいわれる。で計算される。売上高などの営業収入を100得るために，売上原価，販売費･一般管理費および金融費用などの営業費用(〈営業利益〉の項参照)をどれだけ支出したかを表すので，営業比率が100をこえるときには，経済的観点からはその活動を行うべきではない。鉄道業では伝統的にこの比率がよく利用されており，旅客･貨物別，あるいは路線別に計算されている。…

※「赤字路線」について言及している用語解説の一部を掲載しています。

出典｜株式会社平凡社世界大百科事典 第２版について | 情報