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Overhead ratio

Operating expenses divided by the sum of taxable equivalent net Interest income and other operating income. This Ratio shows the proportion of Expense, in relation to total income, that cannot be allocated directly to production of the good or service. Operating expenses include items such as office Rent, Maintenance of machinery, Depreciation costs, etc. In general, companies want to minimize these costs since it is difficult to quantify the revenues generated by undertaking these costs.

Related Terms: 14 ACH, CLU, Depreciation, Expense, ECI, Interest, Inc., Maintenance, Net, Quant, Rating, Ratio, Rent, Tax
Other Related Pages: Category: Accounting Starting With: O
Additional Related Terms: 10-Q, 10-K, Accelerated Cost Recovery System, Accelerated Depreciation, Accrued expense, Accumulated depreciation, Acquisition cost, Allowance for depreciation, Asset/equity ratio, ACH