Operating Profit Percentage

The operating profit percentage can be calculated using the following formula, with figures taken from your income statement:

Frame8

This ratio is designed to give you an accurate idea of how much money you’re making on your primary business operations. It shows the percentage of each sales dollar remaining after all normal costs of operations. By looking at this ratio over time, you can get a fix on whether your overall costs are trending up or down.

Be the first to comment on "Operating Profit Percentage"

Leave a comment

Your email address will not be published.


*


This site uses Akismet to reduce spam. Learn how your comment data is processed.