The operating profit margin is a financial metric that shows how much profit a company makes from its core business operations, relative to its total revenue. It is calculated by dividing the operating profit by total revenue and is expressed as a percentage. This margin helps investors understand how efficiently a company is managing its operating expenses. A higher operating profit margin indicates that a company is effectively controlling its costs and generating more profit from its sales. Conversely, a lower margin may suggest inefficiencies or higher costs. This metric is crucial for comparing the profitability of companies within the same industry, such as retail or manufacturing.