Operating Income to Wages and Salaries

Operating Income to Wages and Salaries

Operating Income to Wages and Salaries :

AKA: Salary to Revenue Ratio, Wages to Sales Ratio

CALCULATION:

Gross income minus depreciation, amortization, and operating expenses not directly attributable to the production of goods divided by salaries, wages, & benefits

INTERPRETATION

This ratio shows the relationship between operating income and amount of wages and salaries paid.