Operating ratio - operating ratio

Japanese: 営業係数 - えいぎょうけいすう

This ratio is used 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 achieve 100 in operating income such as sales, so if the operating ratio exceeds 100, then from an economic point of view, that 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.

Source: Heibonsha World Encyclopedia, 2nd Edition Information

Japanese:

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。

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

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