Operating Expense Ratio,
Definition of Operating Expense Ratio:
A simple definition of Operating Expense Ratio is: In real estate, the ratio of operating expenses (REA) is a measure of the operating expenses of a property in relation to the income earned by the property. Gross operating income is calculated by dividing a building by its operating costs (low depreciation).
- For real estate, the ratio of operating expenses (REA) is a measure of the operating cost of an asset in relation to the revenue from that asset.
- The ratio of operating expenses (REO) is calculated by dividing all operating expenses by operating income into low depreciation and amortization.
- The low operating cost ratio (REA) is more desirable for investors as it reduces the cost of income.
Literal Meanings of Operating Expense Ratio
Meanings of Operating:
(One person) to control an operation (machine, process or system)
Sentences of Operating
The Prime Minister uses the system of distribution to govern
Surgeons operated on your jaw yesterday morning
Synonyms of Operating
control, make go, run, use, handle, utilize, manage, employ, be in charge of, set off, perform surgery, carry out an operation, wield, ply, work, intervene
Meanings of Expense:
The price of something, the money spent on something.
Sentences of Expense
Up to Rs 17,500 can be collected in capital expenditure this year
We order apparel at high prices
Synonyms of Expense
Meanings of Ratio:
A quantitative relationship between two quantities that indicates how many times one value is included or whether another quantity is included.
Sentences of Ratio
The male-female employment ratio is 8 to 1
Synonyms of Ratio
relationship, proportion, correspondence, comparative number, balance, comparative extent, quantitative relation, correlation