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Dictionary by pitch.dog
Financial ratios & operating efficiency · Working

Operating expense ratio

Also called: opex ratio

ELI5

Operating expense divided by revenue or assets under a stated basis.

Used in conversation

“Compare operating expense ratio with the same cohort and period before drawing a conclusion.”

Pitch context

You will see “Operating expense ratio” in financial models, budgets, board packs and investor materials when the discussion reaches financial ratios & operating efficiency.

Why it matters: In financial ratios & operating efficiency, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

When the words have to travel

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Sources & evidence · 5

Direct term-level sources and supporting source families.