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Working ratio definition

Accounting Tools

What is the Working Ratio? The working ratio compares the operating expenses of a business to its revenue. The ratio reveals whether a company can at least recover its operating expenses from sales. The ratio is most commonly used by third parties as part of their analysis of a business. Uses the wrong baseline.

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Sales per person definition

Accounting Tools

Related Courses Business Ratios Guidebook The Interpretation of Financial Statements What is Sales per Person? However, a better metric is profit per person, which also incorporates the effects of all company expenses. The result can be higher sales per person, even though profits may worsen.