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Operating Profit Margin Formula

GoBusiness Operating Profit Margin Formula

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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 = \frac{OI}{S} \cdot 100

OPM - Operating Profit Margin?OI - Operating Income?S - Sales?

Operating Profit Margin Example

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

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

Here is how the Operating Profit Margin equation looks like.

0.2 = \frac{2000}{1E+6} \cdot 100

0.2 = \frac{2000}{1E+6} \cdot 100

0.2 = \frac{2000}{1E+6} \cdot 100

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Operating Profit Margin Solution

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

FIRST Step Consider the formula

OPM = \frac{OI}{S} \cdot 100

Next Step Substitute values of Variables

∴

OPM = \frac{2000}{1E+6} \cdot 100

Next Step Prepare to Evaluate

∴

OPM = \frac{2000}{1E+6} \cdot 100

LAST Step Evaluate

∴

OPM = 0.2

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 Margin

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 Income

Sales

Sales is the total sales for the period.

Symbol: S

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Sales

Other Formulas to find Operating Profit Margin

Go Business Operating Profit Margin

OPM = \frac{OI}{S} \cdot 100

Other formulas in Profitability Ratio category

Go Business Net Profit Margin

NPM = \frac{NI}{S} \cdot 100

Go Pre Tax Margin Ratio

PTI = (\frac{EBT}{S}) \cdot 100

Go Return on Assets Ratio

ROA = \frac{NI}{TA}

Go EBIT Return on Assets

ROA = \frac{EBIT}{ATA}

How to Evaluate Operating Profit Margin?

Operating Profit Margin evaluator uses Operating Profit Margin = Operating Income/Sales*100 to evaluate the Operating Profit Margin, The 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 Operating Profit Margin using this online evaluator? To use this online evaluator for Operating Profit Margin, enter Operating Income (OI) & Sales (S) and hit the calculate button.

FAQs on Operating Profit Margin

What is the formula to find Operating Profit Margin?

The formula of 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 Operating Profit Margin?

With Operating Income (OI) & Sales (S) we can find 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*100

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: Unit

Operating Profit Margin Formula

​GoBusiness Operating Profit Margin Formula

Operating Profit Margin Example

Operating Profit Margin Solution

Operating Profit Margin Formula Elements

Other Formulas to find Operating Profit Margin

Other formulas in Profitability Ratio category

How to Evaluate Operating Profit Margin?

FAQs on Operating Profit Margin

Variable Name

GoBusiness Operating Profit Margin Formula