WebJan 31, 2024 · To calculate the cost-to-income ratio, divide your operating cost by operating income and multiply the total by 100. For example, if a company's operating cost is $25,000 and their operating income is $80,000, then the equation would look like (2 5,000 ÷ 80,000) x 100. The total cost-to-income ratio for this company would be 31.25%. WebOperating Earnings Formula. There are three formulas to calculate Operating Earnings: 1. Operating Earnings = Total Revenue – COGS – Indirect Costs. 2. Operating Earnings …
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