Enter the operating expenses ($) and the total revenue ($) into the calculator to determine the Operational Efficiency.
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Operational Efficiency Formula
The following formula is used to calculate the Operational Efficiency.
Eop = OE / TR
- Where Eop is the Operational Efficiency
- OE is the operating expenses ($)
- TR is the total revenue ($)
How to Calculate Operational Efficiency?
The following two example problems outline how to calculate the Operational Efficiency.
Example Problem #1:
- First, determine the operating expenses ($). In this example, the operating expenses ($) is given as 4000.
- Next, determine the total revenue ($). For this problem, the total revenue ($) is given as 9000.
- Finally, calculate the Operational Efficiency using the equation above:
Eop = OE / TR
Inserting the values from above and solving the equation:
Eop = 4000 / 9000 = .44
Example Problem #2:
Using the same process as above, first define the variables required by the formula. In this case, these values are:
operating expenses ($) = 1200
total revenue ($) = 1600
Entering these values yields:
Eop = 1200 / 1600 = .75
