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Operating Profit Margin Ratio

oboloo Glossary

Operating Profit Margin Ratio

Operating Profit Margin Ratio, or OPMR, is an important metric for businesses to measure the efficiency and productivity of their operations. It shows how much a company makes from its revenue after subtracting operating expenses such as wages, rent, and other overhead costs. To calculate OPMR, add up all revenue from sales and subtract all operating expenses. Then divide this figure by the total revenue from sales. The result is the Operating Profit Margin Ratio, expressed as a percentage. This provides an indication of how efficiently a business is running and how well it’s able to manage its costs. By tracking the OPMR over time, businesses can measure their progress and make better decisions about where to invest their resources.

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