Business

Your Complete Guide To Operating Profit Margin

How To Improve operating profit margin?

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Operating profit margin is one of the top three key profitability figures that must be calculated, monitored, and tracked monthly to ensure your business is profitable.

I dive into the other two figures in the piece below :

3 Profitable Key Metrics You Should Be Using to Grow Your Business & Increase Profits

The operating profit margin is crucial for evaluating a company’s financial performance.

After deducting operating expenses, it measures the percentage of revenue that a company generates from its operations. A higher operating profit margin indicates that a company is more efficient at generating profits.

How to calculate operating profit margin

Operating profit margin is the percentage of sales left after accounting for expenses. This percentage is calculated by subtracting total costs from total sales.

For example, if a company makes $100,000 in sales and spends $20,000 on expenses, its operating profit margin would be…