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Operating profit percentage calculator
The operating profit percentage ratio compares sales to operating profit.
Operating profit is what's left from your sales dollar after you've
deducted your cost of goods sold and your ordinary operating costs.
How to use this calculator
Your most recent income statement provides the numbers you need
to calculate your operating profit percentage.
- Fill in your operating profit.
- Fill in your sales.
- Press "calculate."
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Your operating
profit percentage tells you the percentage of your sales that turn
into profit. Because the figure excludes miscellaneous income and
tax expenses, the operating profit percentage produces an accurate
picture of the profitability of your primary business. Reductions
in this figure over time might indicate a need to re-evaluate your
pricing or your suppliers, or look for ways to cut down on your
operating expenses.
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