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4 TO 1

My version:

Income to expenses would imply Income will be stated first so:

4 to 1 is good meaning the income is 4 times the expenses

1 to 4 is bad meaning you spend 4 times as much as you make.

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12y ago

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Related Questions

Cost to income ratio?

operating expenses/operating income


What is the ratio of expenses to income if the expense are 20000 and the income is 24000?

5:6


The incomes of A B and C are in the ratio 7.9.12 and their expenses are in the ratio 8.9.15 If A saves 1by4 -fraction- of his income how would you find the ratio of their savings?

the ratio of the savings of A B and C would be 56, 99, 69


Are taxes and insurance included in the debt-to-income ratio calculation?

Yes, taxes and insurance are typically included in the debt-to-income ratio calculation. This ratio compares a person's monthly debt payments to their gross monthly income, including expenses like taxes and insurance.


Is debt to income ratio based on gross or net income?

Gross income. It doesn't make sense if it is based on a net income (adjusted for expenses) since it measures how much of debt is paid out of your income.


Which of the following methods for estimating retirement income needs assumes retirement expenses will be some fixed proportion of your preretirement needs?

The replacement ratio method assumes retirement expenses will be a fixed percentage of preretirement needs, typically ranging from 70-80%. It is calculated by dividing desired retirement income by preretirement income.


How to compute cost to income ratio?

A cost or expense ratio is not that hard to calculate. Basically its the operating expenses divided by the average value of assets under management. Many sites have calculators that make this easy.


What methods for estimating retirement income needs assumes retirement expenses will be some fixed proportion of your preretirement needs?

The replacement ratio method assumes that retirees will need a certain percentage of their preretirement income to maintain their standard of living in retirement. Typically, 70-80% of preretirement income is suggested for this method. It is based on the assumption that some expenses may decrease in retirement, such as commuting costs, but it doesn't consider individual circumstances, like healthcare expenses or lifestyle choices.


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.


How is bank cost to income ratio calculated?

The cost/income ratio is an efficiency measure similar to operating margin. Unlike the operating margin, lower is better. The cost income ratio is most commonly used in the financial sector. It is useful to measure how costs are changing compared to income - for example, if a bank's interest income is rising but costs are rising at a higher rate looking at changes in this ratio will highlight the fact. The cost/income ratio reflects changes in the cost/assets ratio. The cost income ratio, defined by operating expenses divided by operating income, can be used for benchmarking by the bank when reviewing its operational efficiency. Francis (2004) observes that there is an inverse relationship between the cost income ratio and the bank's profitability. Ghosh et al. (2003) also find that the expected negative relation between efficiency and the cost-income ratio seems to exist. The study shows that the cost-income ratio is negative and strongly significant in all estimated equations, indicating that more efficient banks generate higher profits.


What is operating ratio?

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 is cost ratio calculated by?

Cost Ratio = expenses/earnings