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Operating costs
Operating costsAlso known as overheads, these are the costs which are additional to the direct costs of manufacturing or of providing services. RELATED TERMS-------------------------------------- Services Activities offered for sale to customers, (advice, transport, banking, insurance, restaurants, hotel rooms, etc.) SIMILAR TERMS-------------------------------------- Operating assets A term for working capital. Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. Operating cash flow demand A measure of the amount of operating cash flow needed to meet the capital costs of a company's strategic investments. Operating cash flow ratio A measure of how well current liabilities are covered by the cash flow generated from a company's operations. Operating cycle The average time between the acquisition of materials or services and the final cash realization from that acquisition. Operating earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. OPERATING ENGINEERS LOCAL UNION #3 Credit Union OPERATING ENGINEERS LOCAL UNION #3 is a credit union with head office in LIVERMORE, CA Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. Operating exposure Degree to which exchange rate changes, in combination with price changes, will alter a company's future operating cash flows. Operating in the red Doing business while losing money. Operating income The profit realized from a business' own operations. Operating income before depreciation and amortization A non-GAAP measure of financial performance used by companies to show profitability in continuing business activities excluding the effects of capitalization and tax structure. Operating lease Short-term, cancelable lease. A type of lease in which the contract period is shorter than the life of the equipment, and the lessor pays all maintenance and servicing costs. Operating leverage Fixed operating costs, which are characterized as leverage because they accentuate variations in profits. Operating margin Operating profit before the payment of interest and taxes divided by sales. Operating netback A measure of oil and gas sales net of royalties, production and transportation expenses. Operating profit margin The ratio of operating profit to net sales. Operating profit or loss Net amount before adding or subtracting extraordinary items. Operating rate The percentage of total production capacity of a company, industry, or country that is being used. Operating ratio A ratio that measures a firm's operating efficiency. Operating risk The inherent or fundamental risk of a firm, without regard to financial risk. The risk that is created by operating leverage. Also called business risk. Operationally efficient market Market in which investors can obtain transactions services that reflect the true costs associated with furnishing those services. Also called an efficient market. PREVIOUS AND NEXT TERMS-------------------------------------- Opening transaction Applies to derivative products. 1) Buy or sell transaction that creates a position out of a flat one (writing an option short or buying an option long). 2) First transaction of the day in a stock. Operating assets A term for working capital. Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. Operating cash flow demand A measure of the amount of operating cash flow needed to meet the capital costs of a company's strategic investments. Operating cash flow ratio A measure of how well current liabilities are covered by the cash flow generated from a company's operations. Operating costs Operating cycle The average time between the acquisition of materials or services and the final cash realization from that acquisition. Operating earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. Operating exposure Degree to which exchange rate changes, in combination with price changes, will alter a company's future operating cash flows. Operating in the red Doing business while losing money. We thank you for using the Financial Dictionary to search for Operating costs. If you have a better definition for Operating costs than the one presented here, please let us know by making use of the suggest a term option. This definition of Operating costs may be disputed by other professionals. Our attempt is to provide easy definitions on Operating costs and any other medical topic for the public at large.
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