toimintakuluprosentti

Toimintakuluprosentti, also known as the operating expense ratio, is a financial metric used to assess the operational efficiency of a company, particularly in the financial services sector like banks. It is calculated by dividing a company's operating expenses by its total revenue. The resulting percentage indicates how much of each euro of revenue is spent on running the business, excluding costs such as interest expenses and provisions for loan losses.

A lower toimintakuluprosentti generally signifies greater efficiency, meaning the company is managing its costs effectively in relation to its income. Conversely, a higher ratio suggests that a larger portion of revenue is consumed by operating costs, which could be a sign of inefficiency or increasing operational burdens. This metric is crucial for investors and analysts to compare the performance of similar companies and to track a company's cost management over time. It helps in understanding the underlying profitability of a business's core operations before considering other financial factors. For banks, it's a key indicator of how well they are managing their personnel, administrative, and other day-to-day operational costs.