# Overhead ratio

**Overhead ratio:** An overhead ratio is a dental practice’s operating expenses expressed as a percentage of its collections.

An overhead ratio is a dental practice’s operating expenses expressed as a percentage of its collections.

Buyers and lenders use it to compare cost structures, since two practices with equal collections can have very different earnings. It feeds directly into adjusted EBITDA.

Source: DDSIntel glossary, https://ddsintel.com/glossary/overhead-ratio

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