Operating Profit Margin Calculator

✖Operating Income is the total income generated after operating expenses but before interest and taxes.ⓘ Operating Income [OI]			+10% -10%
✖Sales is the total sales for the period.ⓘ Sales [S]			+10% -10%

✖The operating profit margin is a margin ratio used to measure a company's pricing strategy and operating efficiency.ⓘ Operating Profit Margin [OPM]

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Formula

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Operating Profit Margin

Formula

`"OPM" = "OI"/"S"*100`

Example

`"0.2"="2000"/"1000000"*100`

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Operating Profit Margin Solution

STEP 0: Pre-Calculation Summary

Formula Used

Operating Profit Margin = Operating Income/Sales*100
OPM = OI/S*100
This formula uses 3 Variables

Variables Used

Operating Profit Margin - The operating profit margin is a margin ratio used to measure a company's pricing strategy and operating efficiency.
Operating Income - Operating Income is the total income generated after operating expenses but before interest and taxes.
Sales - Sales is the total sales for the period.

STEP 1: Convert Input(s) to Base Unit

Operating Income: 2000 --> No Conversion Required
Sales: 1000000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

OPM = OI/S*100 --> 2000/1000000*100

Evaluating ... ...

OPM = 0.2

STEP 3: Convert Result to Output's Unit

0.2 --> No Conversion Required

FINAL ANSWER

0.2 <-- Operating Profit Margin

(Calculation completed in 00.004 seconds)

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Created by Team Softusvista

Softusvista Office (Pune), India

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Verified by Himanshi Sharma

Bhilai Institute of Technology (BIT), Raipur

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Go Pre-Tax Margin = (Earnings Before Tax/Sales)*100

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Go Net Profit Margin = Net Income/Sales*100

Net Profit Margin

Go Net Profit Margin = Net Income/Sales*100

Operating Profit Margin Formula

Operating Profit Margin = Operating Income/Sales*100
OPM = OI/S*100

What is Operating Profit Margin?

The operating profit margin is an indicator of your company's earning power from its current operations. This is the core source of your company's cash flow, and an increase in the operating profit margin from one period to the next is considered a sign of a healthy, growing company. (If your company's operating income is not sufficient to generate the cash you need to keep operating, you must find other sources of cash.)

How to Calculate Operating Profit Margin?

Operating Profit Margin calculator uses Operating Profit Margin = Operating Income/Sales*100 to calculate the Operating Profit Margin, The operating profit margin is a margin ratio used to measure a company's pricing strategy and operating efficiency. Operating Profit Margin is denoted by OPM symbol.

How to calculate Operating Profit Margin using this online calculator? To use this online calculator for Operating Profit Margin, enter Operating Income (OI) & Sales (S) and hit the calculate button. Here is how the Operating Profit Margin calculation can be explained with given input values -> 0.2 = 2000/1000000*100.

FAQ

What is Operating Profit Margin?

The operating profit margin is a margin ratio used to measure a company's pricing strategy and operating efficiency and is represented as OPM = OI/S*100 or Operating Profit Margin = Operating Income/Sales*100. Operating Income is the total income generated after operating expenses but before interest and taxes & Sales is the total sales for the period.

How to calculate Operating Profit Margin?

The operating profit margin is a margin ratio used to measure a company's pricing strategy and operating efficiency is calculated using Operating Profit Margin = Operating Income/Sales*100. To calculate Operating Profit Margin, you need Operating Income (OI) & Sales (S). With our tool, you need to enter the respective value for Operating Income & Sales and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

How many ways are there to calculate Operating Profit Margin?

In this formula, Operating Profit Margin uses Operating Income & Sales. We can use 1 other way(s) to calculate the same, which is/are as follows -

Operating Profit Margin = Operating Income/Sales*100

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