Operating Profit Margin

Operating Profit Margin is a financial metric that shows how efficiently a company generates profit from its core business operations. It is calculated by dividing the operating profit (earnings before interest and taxes) by total revenue, then multiplying by 100 to get a percentage. A higher operating profit margin indicates the company is effective at controlling costs and generating profit from its primary activities. It helps investors and managers assess the company's operational performance independently of external factors like interest payments or taxes. This margin provides a clear view of how well the company's operations are translating revenue into profits.