Operating profit margin
Also found in: Dictionary, Thesaurus, Acronyms.
Related to Operating profit margin: Net profit margin
Operating profit margin
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Profit Margin
A measure of how well a company controls its costs. It is calculated by dividing a company's profit by its revenues and expressing the result as a percentage. The higher the profit margin is, the better the company is thought to control costs. Investors use the profit margin to compare companies in the same industry and well as between industries to determine which are the most profitable.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved