About Operating Profit Margin

The Operating Profit Margin measures the Operating Profit in relation to the Net Sales. This reveals the operating efficiency of the company – how well the company can convert its sales into profits.

Calculate Operating Profit Margin


Interpreting the Calculator Results

If Operating Profit Margin increases over time:

An increasing Operating Profit Margin indicates the company has been more efficient in its day-to-day operations.

If Operating Profit Margin decreases over time:

A decreasing Operating Profit Margin indicates the company has been less efficient in its day-to-day operations.

If Operating Profit Margin stays the same over time:

An unchanged Operating Profit Margin indicates the the companys”s efficiency in its day-to-day operations has remained the same.