Operational Efficiency: How to Measure and Improve Your Ratio in 2026
The Operational Efficiency Ratio answers a simple question: how much does it cost to keep the lights on compared to what comes in?
$$Efficiency = \frac{Operating Expenses}{Total Revenue}$$
The lower the number, the more efficient the company.
The battle for margin
Bloated companies have high ratios (spending a lot to sell a little). Agile companies use technology to keep expenses flat while revenue grows.
Improving the ratio with Jestor
This is where Jestor stands out by delivering the solution in practice:
- Cost Cutting: Automating processes reduces the need for administrative hiring, lowering the numerator.
- Revenue Increase: Faster sales processes increase the denominator.
- Monitoring: Configure a widget in Jestor that calculates this ratio in real-time, alerting if operations become "expensive."
Frequently Asked Questions (FAQ)
What is the ideal ratio?
Depends on the sector. SaaS aims for <50%, Services <70%. MeetJestor.
How to cut expenses without firing?
By reducing waste, rework, and fines for inefficiency.
Does automation count as expense?
Yes, but it is much lower than the equivalent manual labor cost.
Conclusion
With Jestor, it is possible to automate workflows, connect departments, and create internal systems your way, all code-free and AI-supported.
Discover Jestor and learn how to take your company's management to a new level of efficiency and integration.