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Net Income Ratio(Annual Operating Margin)This ratio determines whether the institution is financially better off than in previous years by measuring total economic return. This ratio furnishes a broad
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Operating profit margin is a financial metric that shows the percentage of revenue that a company keeps as profit after paying for variable costs of production, such as wages and raw materials.
All businesses are required to calculate and report their operating profit margin as part of their financial statements.
To calculate operating profit margin, one must subtract operating expenses from gross profit and then divide by revenue.
The purpose of determining operating profit margin is to assess how efficiently a company is managing its costs and generating profit from its operations.
The information that must be reported on operating profit margin include revenue, cost of goods sold, operating expenses, and operating income.
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