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Combined ratio = (Incurred Losses + Expenses)/Earned Premium
Anything 100% or under is considered an underwriting profit. Even greater than 100% may not be a problem, after investment income is added.
What else can I help you with?
Cost to income ratio?
operating expenses/operating income
What is operating assets turnover?
Operating asset turnover is the ratio of net sales divided by operating assets.
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 the bench mark rate of Operating Cash Flow Ratio?
wewewew
Calculatung degree of operating leverage?
DOL is a ratio that is used to identify the changes in the operating leverage that a company requires with growth in sales and income. As and when a company grows and its sales increases, the operating costs also increase and the operating leverage required by the promoters also changes. This ratio helps us identify that value.Formula:DOL = Percentage Change in Net Operating Income / Percentage Change in Sales
The degree of operating leverage is computed as?
DOL is a ratio that is used to identify the changes in the operating leverage that a company requires with growth in sales and income. As and when a company grows and its sales increases, the operating costs also increase and the operating leverage required by the promoters also changes. This ratio helps us identify that value.Formula:DOL = Percentage Change in Net Operating Income / Percentage Change in Sales
What is Degree of Operating Leverage?
DOL is a ratio that is used to identify the changes in the operating leverage that a company requires with growth in sales and income. As and when a company grows and its sales increases, the operating costs also increase and the operating leverage required by the promoters also changes. This ratio helps us identify that value.Formula:DOL = Percentage Change in Net Operating Income / Percentage Change in Sales
What is the meaning of degree of operating leverage?
DOL is a ratio that is used to identify the changes in the operating leverage that a company requires with growth in sales and income. As and when a company grows and its sales increases, the operating costs also increase and the operating leverage required by the promoters also changes. This ratio helps us identify that value.Formula:DOL = Percentage Change in Net Operating Income / Percentage Change in Sales
