Operating Ratio

RECENT NEWS
The Economic Times  Apr 21  Comment 
The former Finance and Home Minister said if the operating ratio is close to 100 per cent or has exceeded 100 per cent, that indicates a "comprehensive failure" of management of the Indian Railways.
The Hindu Business Line  Apr 20  Comment 
Allowances and pensions derails efficiency
The Economic Times  Apr 20  Comment 
The railways is expected to report an operating ratio, a measure of its performance, of about 98.5% in FY18, against the revised 96% announced in the February budget.
The Hindu Business Line  Mar 13  Comment 
Asks railways to revisit passenger tariffs to recover cost of operations in phased manner
The Economic Times  Jan 24  Comment 
Railways currently has an operating ratio of 94%. Operating ratio indicates is the amount railway spends to earn 100 rupees.
The Times of India  Jan 3  Comment 
Operating ratio shows how much of revenue goes into meeting expense. Lower the ratio better it is for the railways.
The Economic Times  Jan 2  Comment 
Operating ratio shows how much of revenue goes into meeting expense. Lower the ratio better it is for the railways.




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This is calculated by dividing Operating Expenses by Operating Revenue.

This metric is useful to determine the efficiency of the company- the smaller the ratio, the better the company is able to generate profit if revenues decrease.

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