Operating profit margin

    Cards (3)

    • What does operating profit margin show and measure ?
      The operating profit made on sales revenue
      measures pricing strategy and operating efficiency - gives idea on how much a business makes on each pound of sales
    • If the operating margin is increasing what does it show
      The company is making more profit per pound of sales
    • What is the formula for operating profit margin
      Operating profit / sales revenue x 100
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