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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 2 Variables
Variables Used
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 00.031 seconds)

6 Other formulas that you can solve using the same Inputs

Business Operating Profit Margin
operating_profit_margin = Operating Income/Sales*100 Go
Business Gross Profit Margin when Gross Profit and Sales are given
gross_profit_margin = Gross Profit/Sales*100 Go
Gross Profit Margin when Gross Profit and Sales are given
gross_profit_margin = Gross Profit/Sales*100 Go
Total Asset Turnover
total_asset_turnover = Sales/Total Assets Go
Business Net Profit Margin
net_profit_margin = Net Income/Sales*100 Go
Net Profit Margin
net_profit_margin = Net Income/Sales*100 Go

1 Other formulas that calculate the same Output

Business Operating Profit Margin
operating_profit_margin = Operating Income/Sales*100 Go

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 and 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) and 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 and 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) and Sales (S). With our tool, you need to enter the respective value for Operating Income and 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 and 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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