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.
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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.
