Operating Profit Margin

Home » CMA Glossary Term » Ratios and Performance Metrics » Operating Profit Margin

Operating Profit Margin, meaning a key financial metric, measures the proportion of revenue that remains after covering operating expenses, excluding interest and taxes. It is calculated by dividing operating profit by total revenue, expressed as a percentage. This ratio provides insight into a company’s operational efficiency and profitability, serving as a critical indicator for investors and management. A higher margin suggests better cost control and profitability.

CMA Exam Academy 16-Week Accelerator Program