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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.
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.