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Operating Expense Ratio

Purpose -

Compares operating expenses to total revenue to assess cost efficiency.

Operational Definition -

(Total Operating Expenses / Total Revenue) * 100

Type of Metrics -

KPI

Function -

Finance

Associate Function -

Finance

Desired Trend -

Lower the better

Recommended Frequency - 

Quarterly

External References -

https://insightsoftware.com/blog/30-manufacturing-kpis-and-metric-examples/

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