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The operating profit margin is a margin ratio used to measure a company's pricing strategy and operating efficiency. Check FAQs
OPM=OIS⋅100
OPM - Operating Profit Margin?OI - Operating Income?S - Sales?

Business Operating Profit Margin Example

With values
With units
Only example

Here is how the Business Operating Profit Margin equation looks like with Values.

Here is how the Business Operating Profit Margin equation looks like with Units.

Here is how the Business Operating Profit Margin equation looks like.

0.2Edit=2000Edit1E+6Edit⋅100
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HomeIcon Home » Category Financial » Category Business » Category Financial Ratios » fx Business Operating Profit Margin

Business Operating Profit Margin Solution

Follow our step by step solution on how to calculate Business Operating Profit Margin?

FIRST Step Consider the formula
OPM=OIS⋅100
Next Step Substitute values of Variables
∴ OPM=20001E+6⋅100
Next Step Prepare to Evaluate
∴ OPM=20001E+6⋅100
LAST Step Evaluate
∴OPM=0.2

Business Operating Profit Margin Formula Elements

Variables
Operating Profit Margin
The operating profit margin is a margin ratio used to measure a company's pricing strategy and operating efficiency.
Symbol: OPM
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Operating Profit MarginOpen Variable
Operating Income
Operating Income is the total income generated after operating expenses but before interest and taxes.
Symbol: OI
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Operating IncomeOpen Variable
Sales
Sales is the total sales for the period.
Symbol: S
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find SalesOpen Variable

Other Formulas to find Operating Profit Margin

​Go Operating Profit Margin
OPM=OIS⋅100

Other formulas in Profitability Ratio category

​Go Business Net Profit Margin
NPM=NIS⋅100
​Go Pre Tax Margin Ratio
PTI=(EBTS)⋅100
​Go Return on Assets Ratio
ROA=NITA
​Go EBIT Return on Assets
ROA=EBITATA

How to Evaluate Business Operating Profit Margin?

Business Operating Profit Margin evaluator uses Operating Profit Margin = Operating Income/Sales*100 to evaluate the Operating Profit Margin, Business Operating Profit Margin is a margin ratio used to measure a company's pricing strategy and operating efficiency. Operating Profit Margin is denoted by OPM symbol.

How to evaluate Business Operating Profit Margin using this online evaluator? To use this online evaluator for Business Operating Profit Margin, enter Operating Income (OI) & Sales (S) and hit the calculate button.

FAQs on Business Operating Profit Margin

What is the formula to find Business Operating Profit Margin?
The formula of Business Operating Profit Margin is expressed as Operating Profit Margin = Operating Income/Sales*100. Here is an example- 0.2 = 2000/1000000*100.
How to calculate Business Operating Profit Margin?
With Operating Income (OI) & Sales (S) we can find Business Operating Profit Margin using the formula - Operating Profit Margin = Operating Income/Sales*100.
What are the other ways to Calculate Operating Profit Margin?
Here are the different ways to Calculate Operating Profit Margin-
  • Operating Profit Margin=Operating Income/Sales*100OpenImg
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