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What is an operating profit margin?

Asked 3 years ago

What does it mean for a business to have an operating profit margin and how do I calculate it?

Dallas Whitaker

Wednesday, February 09, 2022

The operating profit margin shows a company's profitability after paying the operating expenses and the cost of goods sold before deducting interest and tax.

Its formula is;

Operating margin = Operating Income / Nets Sales Revenue *100





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