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Take a LookQuick Definition
Determines the level of profitability of a company’s operations.
There's More to Financial Analysis Than You Think...
The Financial Analysis Success Kit can help!
Why you should take a look at the Financial Analysis Success Kit:
We've combined all our highly popular financial analysis tools into one megafinancialanalysiskit that will save you hundreds of dollars if purchased separately. The kit contains 9 files packed with the most important financial ratio analysis tools you can find to help rocket your way to mastering financial analysis. The kit includes:

The eBook "Learn Ratio Analysis In Minutes"

The Learn Financial Ratio Analysis Excel Spreadsheet (2 versions!)

A BONUS eBook..."Key Financial Statement Terms"

Another HUGE BONUS...FivePart Financial Ratio Cheat Sheet Series
The result? You get all these professionally created tools for a great low price.
Learn more on our product page:
Operating Profit Percentage Formula
Explanation of Operating Profit Percentage
The Operating Profit Percentage measures how much of a profit the company is generating from their main operations. Subtracting the Cost of Goods Sold and Sales General and Administration expenses from the Net Sales reveals estimated Operating Expenses.
Importance of Operating Profit Percentage
This ratio uncovers situations where companies are relying on actions other than operations to generate an income. Investing activities and sales of assets generate revenue, but these actions are not usually sustainable and regular as maintaining a steady flow of sales. A high, or increasing Operating Profit Percentage is usually a positive sign, showing the company is increasingly able to generate sales from its operations.