What is an Operating Profit Margin?

The operating profit margin measures a company's operational efficiency, expressed as a percentage. It is calculated by subtracting operating expenses from net sales, dividing this number by net sales and then multiplying by 100%.

For example, an accountant reviews the Operating Profit Margin to assess the company's financial health and prepare for tax season.

Conçu pour les entreprises. Soutenu par l'expérience.