Operating expenses as a percentage of sales is the percentage of revenue that your company spends on operating expenses.
Operating expenses are the costs that your company incurs to run its business. These include things like salaries, utilities, rent, marketing, and other costs that are necessary to keep the business running.
Operating expenses are a necessary evil for any company, but they should be kept to a minimum. If your operating expenses are too high, it's time to take a serious look at where your company is spending its money and whether or not it's worth it.
Operating expenses are also a good way to determine how much money your company is making. If your operating expenses are $100,000 and your sales are $1,000,000, your operating expenses are 10% of your sales.
If your operating expenses are $1,000,000 and your sales are $1,000,000, your operating expenses are 100% of your sales.