Operating Expense Ratio Excel Template

Description
Operating expenses are required when running a business. When the cost of operations is compared with the revenue generated, we get the operating expense ratio (OER).

OER is commonly used in real estate and is a common ratio used while performing real estate analysis, where analysts judge the cost of operating a property with the income generated by the property.

The formula is the following:

Operating Expense Ratio = Operating Expenses / Revenues

The purpose of the OER is to see how much income a company has been generating in relation to the operating expense it is incurring. All companies want a low OER as this indicates good performance. As an investor, you need to see the OER of a company for a long period of time.

The template provided allows you to easily calculate the ratio. You simply need to provide two inputs of operating expenses and revenues.