Define Operating profi t margin
Introduction:
The term profit defines the financial advantage accomplished when the revenue earned from company exceeds its costs and expenses involved in supporting that activity.
Answer:
Operating profit margin is a profit or performance ratio that reflects a company’s percentage of profit from its operations before taxes and interest charges are subtracted.
Since meeting up all of its business operations, operating profit margin is the measure of the company’s real profit which provides an indication of how much profit the corporation can make without getting any additional liability. Operating profit margin is the percentage that indicates the relationship between the profits after all business and revenue expenses. It shows the efficiency of the company operation in producing income after all its operating expenses have been met.
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