Quarterly operating cost-to-income ratio
factor.formula
Single quarter operating cost to income ratio:
This formula calculates the operating cost-to-revenue ratio for a single quarter. The numerator is the operating cost for the quarter, and the denominator is the operating revenue for the quarter.
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Operating costs for the quarter. Operating costs refer to the costs directly incurred by a company when it sells goods or provides services and are related to production or operations. They include raw material costs, direct labor costs, manufacturing expenses, etc. This data usually comes from the income statement in the company's financial statements.
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Revenue for the current quarter. Revenue refers to the revenue a company earns from selling goods or providing services. This data usually comes from the income statement in the company's financial statements.
factor.explanation
The Single-Quarter Operating Cost to Revenue Ratio reflects how much operating cost a company consumes to generate one unit of operating revenue in a specific quarter. The lower the indicator, the better the company is at controlling costs, the higher its profit efficiency, and the stronger its short-term profitability may be. This indicator can be used to evaluate a company's short-term operating efficiency and analyze the changing trends of its cost control ability and profitability. Investors can compare it with other companies in the same industry or the company's historical data to better evaluate its financial performance.