An indication of the general business health of a company as measured by its capacity to cover its operating costs out of its annual gross income. A low ratio, as determined by dividing total operating costs by total revenues, is an indication of good business health.
Related information about working ratio:
- Working Ratio Definition | Investopedia
A working ratio below 1 implies that the company is able to recover operating costs, whereas a ratio above 1 reflects the company's inability to do so.
- Working Ratio: Definition from Answers.com
Working Ratio A ratio used to measure a company's ability to recover operating costs from annual revenue.
- Working Ratio - Financial Dictionary - The Free Dictionary
A measure of a company's ability to recover its operating expenses from its gross income in a given year. It is calculated by taking the company's total expenses, ...
- Working Ratio Definition & Example | InvestingAnswers
We explain the definition of Working Ratio, how it works and why it's an important concept in business, finance and investing.
- What Is a Working Ratio?
A profitable company must make more money than it spends. The equation is fairly simple: profit or net income is defined as revenues minus costs. Analysts use ...
- working ratio
фр. coefficient brut d exploitation исп. coeficiente de explotación показатель использования оборотного капитала Выраженное в процентах отношение ...
- What is the working ratio? - Questions & Answers - AccountingTools
Jul 22, 2012 ... The working ratio is a measure of the ability of a business to recover its ongoing operating expenses. It is used as a general indicator of the ...
- Is Paring 'Nonworking; Spend Not a Move for Modern Times ...
May 7, 2012... and production in order to devote as much as possible to "working media." The lower the nonworking to working ratio the better, by this logic.