OPERATING RATIO Definition

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OPERATING RATIO measures a firms operating efficiency; calculated: company operating expenses divided by its operating revenues.

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MOTIVATION is the cause of the action, i.e. the reason that gives purpose and direction to behavior.

MARKET TO BOOK VALUE is calculated by dividing the market value (MV) of a company, i.e., the total value of all its outstanding shares, by the value of its tangible assets (TA). Also known as TOBIN RATIO = MV/TA.

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