How can you calculate Operating Ratio in case of services firm?

12manage is looking for contributors...


 
Operating Profit Percentage > Forum Log in

How can you calculate Operating Ratio in case of services firm?
Sumit
I need help to calculate the operating profit ratio (operating profit percentage) of a service firm as there are no goods.
 

 
Calculation of Operating Ratio in Service Firms
Sahr Dauda, Member
Even in service firms there are products, though they may not be tangible goods. And expenses must have been incurred to make these "goods" (or make the services possible) that brings in the revenue.
Define the expenses and define the revenues. You now know your sales and your expense, so you can get your profit.
A ratio of this profit in relation to your sales generated (sales) will give your operating ratio.
 

 











 

  Do you wish to study further? You can learn more from the summary, forum, discussions, lessons, courses, training, instructions, expert tips, best practices and education sources. Register.  


Special Interest Group Leader

You here


More on Operating Profit Percentage
Summary
Forum
  • How can you calculate Operating Ratio in case of services firm?

Best Practices

Expert Tips

Resources



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2018 12manage - The Executive Fast Track. V14.1 - Last updated: 16-7-2018. All names of their owners.