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Question: What exactly is meant by the operating ratio with respect to the Railways budget?
Answer. Operating ratio is the amount of rupees spent to earn 100 Rupees.
- If its less than 100 = you're making profit.
- If more than 100 =you're making losses.
For railways, Operating ratio for passenger trains used to be about Rs.75 earlier but now it is almost Rs.125. That means Railway is not making profit in passenger trains.
Because of this increase in Operating Ratio, Railway increases Freight charges (money charged on transport of goods such as coal, cement etc), to cover up the losses. This is called Cross-subsidization and it increases the inflation indirectly.
What else can I help you with?
what is meant by fix ratio of atom in molecule?
1 ratio 5 is the fixed ratio of atom in a molecules...
Cost to income ratio?
operating expenses/operating income
How do you calculate operating cost ratio?
The operating cost ratio (OCR) is calculated by dividing total operating expenses by total revenue. The formula is: OCR = (Operating Expenses / Total Revenue) x 100. This ratio helps assess the efficiency of a business in managing its operating costs relative to its income, with a lower ratio indicating better operational efficiency.
What is operating assets turnover?
Operating asset turnover is the ratio of net sales divided by operating assets.
What is meant by the terms margin and turnover in ROI calculations?
Margin and turnover in ROI calculations: Margin: In ROI calculation margin is the ratio of net operating income to total sales. Turnover: In ROI calculation turnover means the ratio of total sales to average operating assets. Operating assets include cash, A/R, inventory, PP&E, and so on. Land held for future use, leases, and investments do not count.
Which financial ratio is the best measure of the operating effectiveness of a firms management?
current ratio
When evaluating the operating efficiency of a firm's managers What ratio would you look at?
When evaluating the operating efficiency of a firm's managers, you would look at the Asset Evaluation Ratio.
Operating Cash Flow to Current Liabilities Ratio?
operating cash flow to current liabilities ratio = cash flow from operations / avg. total liabilities
What is an operating margin in business?
In business, an operating margin is the revenue of a business minus the operating expenses. It is the ratio of operating income divided by net sales.
Define leverage ratio?
Leverage Ratio is an idea of how a change in a company's output will affect their operating income. It is used to measure a company's mix of operating costs, showing how a change in the company's ideas will affect the output of their operating income.
What is meant by Earnings multiplier?
P/E Ratio
What is meant by DSCR.?
Debt Service Coverage Ratio
