Operating ratios

Discussion in 'Motor Carrier Questions - The Inside Scoop' started by chalupa, Feb 22, 2012.

  1. chalupa

    chalupa Road Train Member

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    I read the mega quarterlies in the trucker mag and they're all hovering around 90% +/-....so I applied their formula to my business....to see what I'm doing........ and guess what? Mine is in the mid 60's...hmmmmm

    Did I do something wrong ? hit the wrong key ? Nope.....

    So why is expert mega carrier up in the 88 to 90% range and I'm in the mid 60's? Is that 25% ate up with mega manager salaries?

    What should my numbers be as a o/o ?
     
  2. wis bang

    wis bang Medium Load Member

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    So you spend $0.60 to make $1.00 and they spend $0.90... sounds good so far! I remember O/R in the Top 100 being .98 to 1.02 back in the 80's...Yup anything over.99 is breakeven - loosing money...one carrier was highlighted for an O/R of 90!
     
  3. chalupa

    chalupa Road Train Member

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    Yeah, about that. It's a moving target. My dog is old so it's always something but that's my avg for 2011.

    Again, if mega carrier is so smart then why is his o/r 30% higher than mine? Where's the money going ?
     
  4. jlkklj777

    jlkklj777 20 Year Truckload Veteran

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    Driver wages, equipment costs, fuel, maintenance, tires, taxes, benefits, retirement plans, real estate, office staff wages (load planners, dispatchers, safety department), janitors, office equipment, accountant, and lawyers on retainer.

    As a single pony operator your expenses should be much lower.

    Companies with thousands of trucks will generate millions in profits per year on just a few cents per mile and save thousands on trucks, fuel, and parts.
     
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  5. mustang970

    mustang970 Road Train Member

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    Brick & mortar is expensive.
    So is having 2.5 to 1 (or greater) trailer to truck ratio.
    Also don't forget those CEO, and other big wig salaries.
     
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  6. LSAgentOZR

    LSAgentOZR Road Train Member

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    Really? C'mon Chalupa, you surely can't compare your one man operation to a mega carrier with a 500 truck fleet...:biggrin_2552: It's apples and oranges my friend.
     
  7. chalupa

    chalupa Road Train Member

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    Why not? He should be better than me in any arena imo. The only thing he can't do that I can is treat a driver fairly....( he doesn't know how and doesn't care to learn )
     
  8. wichris

    wichris Road Train Member

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    So do you figure full wages,employer portion of taxes,comp,umc,medical benefits,cost of new equipment(new not used)?
     
  9. chalupa

    chalupa Road Train Member

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    Yes...cost of my equipment...not new but yes, everything. I don't have medical either.

    Why would I add in a new truck pricing for ROI ? I don't have one...... If I did then I would.....
     
  10. wichris

    wichris Road Train Member

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    Then it's apples and oranges. Leave the wages out and it will be better yet.
     
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