0
A cost or expense ratio is not that hard to calculate. Basically its the operating expenses divided by the average value of assets under management. Many sites have calculators that make this easy.
Wiki User
∙ 10y ago
Wiki User
∙ 9y agoYou can compute cost to income by putting cost over the total income and dividing. You can also find a common denominator and get the ratio.
Add your answer:
Earn +20 pts
Income to staff cost ratio?
staff cost to income
Cost to income ratio?
operating expenses/operating income
How is bank cost to income ratio calculated?
The cost/income ratio is an efficiency measure similar to operating margin. Unlike the operating margin, lower is better. The cost income ratio is most commonly used in the financial sector. It is useful to measure how costs are changing compared to income - for example, if a bank's interest income is rising but costs are rising at a higher rate looking at changes in this ratio will highlight the fact. The cost/income ratio reflects changes in the cost/assets ratio. The cost income ratio, defined by operating expenses divided by operating income, can be used for benchmarking by the bank when reviewing its operational efficiency. Francis (2004) observes that there is an inverse relationship between the cost income ratio and the bank's profitability. Ghosh et al. (2003) also find that the expected negative relation between efficiency and the cost-income ratio seems to exist. The study shows that the cost-income ratio is negative and strongly significant in all estimated equations, indicating that more efficient banks generate higher profits.
How do you compute break even analysis?
breakeven = fixed cost / contribution margin ratiocontribution margin ratio = sales - variable cost / sales
What is a strong cost to income ratio?
A strong cost to income ratio is a low ratio, typically below 50%. This indicates that a company's operating costs are relatively low compared to its income, indicating efficient operations and good financial management. A low ratio suggests that a company is able to generate significant profits while keeping costs under control, which is favorable for investors and stakeholders.
Management accounting ratio analysis along with ratio analysis formulas?
How dose the cost income ratio is calculated in the banking model?
What assets utilization?
How do I compute Asset Utilization ratio
Which agency is responsible to compute national Income?
RBI
What Asset utilization ratios?
How do I compute Asset Utilization ratio
What are Asset Utilization Ratios?
How do I compute Asset Utilization ratio
How do you compute the cost basis for the Fairpoint Communications spin off?
How do you compute the cost basis for fairpoint communications spin off
Why do you compute national income?
it means the world is coming to an end
