Calculating operating profit margin is a business metric used to assess an organization’s overall financial performance. It measures the ratio of net income earned from the core operations of the business versus the total sales. By tracking this number, companies can better understand how effective their activities are in generating profit. The higher the operating profit margin, the more successful the company is proving to be at converting revenues into profits. It also allows for quick comparison between different organizations, a valuable tool for investors and potential customers alike.