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Free Simplified Accounting Course [ Bonus Course ]
About Lesson

Operating Profit Margin is a key financial metric that reflects the percentage of revenue remaining after covering the operating expenses, excluding interest and taxes. It is calculated by dividing operating income by net sales and multiplying by 100. This ratio helps assess a company’s efficiency in managing its core operations, providing insight into profitability and operational performance. A higher operating profit margin indicates effective cost management and robust operational health.

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