Operating Profit Margin Calculator
Your operating profit margin is calculated by dividing your ‘Operating Income’ by your ‘Revenue’ x 100%. This metric can be used to help you look into specific aspects of your businesses operations.
Operating Profit Margin Calculator
What can knowing your operating profit margin do for you?
By knowing your businesses operating profit margin you can help you understand how well your business is able to generate a profit purely from its business operations.
Reducing operation expenses
You can compare your operation profit margin with industry benchmarks to determine how realistic it is to reduce your expense to increase profits.
Increasing amount of sales
Lowering expenses is one thing, but increasing the amount of sales to generate more profits in your business is the best course of action.
Business evaluation
Knowing your operating profit margin can impact your overall business valuation especially if you’re looking for financing, investors or if you’re trying to sell the business.
“We will work with you and your team to ensure your businesses finances are organized, and profitable”
– Danny Khanna, Managing Partner