Non-billable costs as a percentage of total revenue. Tracks operational efficiency and cost discipline.
Overhead Ratio is defined as: Non-billable costs as a percentage of total revenue. Tracks operational efficiency and cost discipline.
Overhead Ratio is typically measured using data from a Accounting / ERP. This system of record provides the transactional and operational data required to calculate and monitor this metric accurately and in real time.
Overhead Ratio is a key performance indicator used across the following sectors:
Firehawk Analytics connects directly to your Accounting / ERP and delivers a live Overhead Ratio dashboard. Configuration is completed within 48 hours — no data analyst required on your team.
Percentage of available working hours spent on billable client work. The single most important profitability lever for services firms.
Total revenue divided by the number of full-time equivalent employees. Measures workforce productivity at a macro level.
Gross profit on a project after deducting direct labour and expenses. Indicates pricing accuracy and delivery efficiency.
In 48 hours, you'll have a live Overhead Ratio dashboard connected to your Accounting / ERP.