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Operating Expense Ratio is calculated by:

Total Operating Expenses
divide by Total Gross Income
equals the Operating Expense Ratio

Considers:
Expenses and Gross Income (Potential)

Ignores:
Vacancy, Time Value of Money, Sale Proceeds, All Financing (Loans), Other Years NOI, All Taxes ... and a lot of other things

Why is Operating Expense Ratio useful?

Operating Expense Ratio is the Total Operating Expenses divided by the Gross Income, which tests the reality of the total expense amount, as well as the expense growth rate. Note that this ratio is better presented in the Common Size report which shows the same ratio for each of the individual expenses as well as the total.

What is the Operating Expense Ratio Sensitive to:

Anything related to Expenses and Gross Income (Potential) in the current year