Expense Ratio
Term · Environment · MLC-T-ENV-010404
1. Expense Ratio = Operating Expense / Total Expense
2. The expense ratio measures the amount of operating expenses compared to total expenses. A high ratio indicates that most expenditures are for operations - leaving the remaining balance for non-operating costs (such as debt service, capital improvements, etc.). If the non-operating balance is small, then the utility is not likely to meet all of its capital-related expenses, which could cause the system to deteriorate more rapidly.
| Identifier | MLC-T-ENV-010404 |
|---|---|
| Field | Environment |
| Subject | Water |
| References | Check Up Program for Small Systems (CUPSS) Glossary |
Record as JSON
{
"id": "MLC-T-ENV-010404",
"term": "Expense Ratio",
"field": "Environment",
"definition": "1. Expense Ratio = Operating Expense / Total Expense\n\n2. The expense ratio measures the amount of operating expenses compared to total expenses. A high ratio indicates that most expenditures are for operations - leaving the remaining balance for non-operating costs (such as debt service, capital improvements, etc.). If the non-operating balance is small, then the utility is not likely to meet all of its capital-related expenses, which could cause the system to deteriorate more rapidly.",
"subject": "Water",
"references": [
"Check Up Program for Small Systems (CUPSS) Glossary"
],
"url": "https://mlchart.com/terminology/environment/expense-ratio/"
}
Record 10,404 of 30,736 in Environment terminology (MLC-0121). Request the full dataset.