Operating profit margin


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Related to Operating profit margin: Net profit margin

Operating profit margin

The ratio of operating profit to net sales.

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.
References in periodicals archive ?
* OPERATING PROFIT MARGIN: A higher operating profit margin (which is EBITDA/Sales) has a very positive impact on pretax current ROE.
In 2003, Waters's operating profit margin was 24.7%, considerably higher than the other companies surveyed.
The operating profit margin after deducting SG&A expenses was 2.74%, with an increase of 0.06 percentage point as compared with the same period of last year.
"The healthy organic growth of the group, combined with our robust balance sheet, put Morgan Crucible in a strong position to continue to drive towards our target of mid-teen operating profit margins."
As a result, Services gross profit margin was 16.0 percent, down 80 basis points year over year, and Services operating profit margin was 2.8 percent, flat year over year.
This compares with the prior profit guidance where the full-year operating profit margin was estimated to be over 25%.
With the overall operating profit margin raised by 100bp and 20bp to 14.8% and 13.9% in 2014 and 2015, respectively.
Despite a 10% decline in shipments of PCs in the second quarter from the previous quarter, Acer said its operating profit margin in the second quarter will remain the same as the previous year's.
Operating profit margin and net profit margin for the year was 61% and 39% respectively.
The group, which recently stepped up a cost cutting drive to boost its operating profit margin, said its nine-month sales were pounds 27.9 billion.
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