What is an operating profit margin?
Asked 4 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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