The overhead ratio measures how much of a company's total revenue is spent on indirect costs. This metric is useful for identifying areas where costs can be reduced to improve profitability.

She has 15+ years of experience as a financial writer and technical analyst. Investopedia / Paige McLaughlin Overhead is an ongoing business expense not directly attributed to creating a product ...

Reviewed by Charlene Rhinehart Fact checked by Suzanne Kvilhaug What Is a Liquidity Ratio? A liquidity ratio is a measurement ...

Years ago, when we developed a financial dashboard for our board, we included meaningful measures such as our liquidity ratio and months in cash. Then, we dutifully added an overhead cost ratio. Our ...