Operating profit margin calculation is a metric used to measure the efficiency of a company’s operations, and is expressed as a percentage. It is calculated by dividing operating profit, also known as Earnings Before Interest and Taxes (EBIT), by total sales over a given period. A higher operating profit margin indicates that the company is doing well in terms of generating income from its daily operations. This helpful metric gives investors and analysts insight into how successful a company’s operations are without taking into account non-operating items such as taxes or interest payments. By understanding their true operational performance, business owners can make informed decisions about their strategies for optimizing profits.