In this video we discuss what is Operating Expense Ratio Formula? along with simple to advanced examples to illustrate operating expense ratio formula in a better manner.

𝐎𝐩𝐞𝐫𝐚𝐭𝐢𝐧𝐠 𝐄𝐱𝐩𝐞𝐧𝐬𝐞 𝐑𝐚𝐭𝐢𝐨 𝐅𝐨𝐫𝐦𝐮𝐥𝐚
---------------------------------------------------------------

Operating Expense Ratio Formula is a most common ratio which is used while doing the real estate analysis.

Operating Expense Ratio Formula is popular in real estate industry.


Below is the formula for operating expense ratio:-

Operating Expense Ratio = Operating Expense / Revenues


𝐎𝐩𝐞𝐫𝐚𝐭𝐢𝐧𝐠 𝐄𝐱𝐩𝐞𝐧𝐬𝐞 𝐑𝐚𝐭𝐢𝐨 𝐅𝐨𝐫𝐦𝐮𝐥𝐚 𝐄𝐱𝐚𝐦𝐩𝐥𝐞
-------------------------------------------------------------------------------

Below is an simple example to illustrate operating expense ratio formula.

Lotus Inc. has been comparing its operating expenses for a property it bought and it is trying to find out the operating expense ratio.

Below are the details –

Operating expenses – $60,000
Revenues – $500,000

So here we need to find out the operating expense ratio of Lotus Inc.

So here we will directly use the operating expense ratio formula through which we will get:

Operating Expense Ratio = Operating Expenses / Revenues

= $60,000 / $500,000 = 12%.

So the Operating Expense Ratio of Lotus Inc wil be 12%

To know more about 𝐎𝐩𝐞𝐫𝐚𝐭𝐢𝐧𝐠 𝐄𝐱𝐩𝐞𝐧𝐬𝐞 𝐑𝐚𝐭𝐢𝐨 𝐅𝐨𝐫𝐦𝐮𝐥𝐚, you can go to this 𝐥𝐢𝐧𝐤 𝐡𝐞𝐫𝐞:- [ Ссылка ]

Subscribe to our channel to get new updated videos. Click the button above to subscribe or click on the link below to subscribe - [ Ссылка ]

свернуть