Operating Profit Margin is a financial metric that measures the percentage of revenue that remains after covering operating expenses, excluding taxes and interest. It is calculated by dividing Operating Profit by Total Revenue and multiplying by 100. A higher margin indicates a more efficient company in managing its core business operations.
This metric is important for assessing a company's profitability and operational efficiency. Investors and analysts often use the Operating Profit Margin to compare companies within the same industry, as it provides insight into how well a company controls its costs relative to its sales.