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

      
			              Forum
			            
							              5

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

	          		🔥NEW I need help to calculate the operating profit ratio (operating profit percentage) of a service firm as there are no goods.
				      
X

							  			Welcome to the Operating Profit Percentage forum. The topic being discussed here is: "How can you calculate Operating Ratio in case of services firm?". 
										
Sign up now to gain access.  It's free. 

				                  	Comments
														Rating

										              1

						            	Sahr Dauda
Student (University), Sierra Leone
												
				                Calculation of Operating Ratio in Service Firms

													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.
				                
Leave a comment

		                            More on Operating Profit Percentage:
		                          
													            	Summary
													            
												              DIscussion Topics
												            
		                          	👀How can you calculate Operating Ratio in case of services firm?

		                              Special Interest Group
		                            
		                            Do you know a lot about Operating Profit Percentage? Become our SIG Leader