Operating Ratio: Trucking's Oxygen

Discover the vital operating ratio metric for trucking businesses, a survival tool that reveals your operations efficiency. Calculate it by dividing operating expenses by revenue, then multiply by 100. Aim for under 85% for profitability, as anything over 95% signals financial distress. Unlike breakeven, this ratio shows cost percentage, exposing inefficiencies and predicting financial future. Neglecting it is like driving without a fuel gauge, so track it for informed decisions and long-term success.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.