Operating Profit Margin
2 July 2021
Operating Profit Margin (often shortened to just Operating Margin) provides an indicator of the operating efficiency and / or pricing strategy of a business.
It divides the operating income by revenue to identify the proportion of the revenue that remains after taking out the costs of operating the business (such as labour costs, material supplies, overheads, marketing, admin, etc.).
Operating Profit Margin = (Operating Profit / Revenue) x 100
This indicator is included in the book: Key Performance Indicators – the 75+ measures every manager needs to know, which contains an in-depth description of this KPI, as well as practical advice on data collection, calculations, target setting, and actual usage.
Related Articles
6 Powerful AI Prompts That Will Help You Learn And Ace Exams (Without Cheating)
By now, “smart” versions exist of just about every home appliance, gadget and gizmos we can think of. However, manufacturers continue[...]
5 Fatal GenAI Mistakes That Could Destroy Your Business In 2025
By now, “smart” versions exist of just about every home appliance, gadget and gizmos we can think of. However, manufacturers continue[...]
4 Game-Changing Quantum Computer Types That Could Transform Everything
By now, “smart” versions exist of just about every home appliance, gadget and gizmos we can think of. However, manufacturers continue[...]
AI’s Competitive Edge: Turning Data Challenges Into Business Success
By now, “smart” versions exist of just about every home appliance, gadget and gizmos we can think of. However, manufacturers continue[...]
The Everything AI: How Google’s Super Assistant Could Change Life As We Know It
By now, “smart” versions exist of just about every home appliance, gadget and gizmos we can think of. However, manufacturers continue[...]
5 Amazing Things You Can Do With ChatGPT’s New Operator Mode?
By now, “smart” versions exist of just about every home appliance, gadget and gizmos we can think of. However, manufacturers continue[...]
Sign up to Stay in Touch!
Bernard Marr is a world-renowned futurist, influencer and thought leader in the fields of business and technology, with a passion for using technology for the good of humanity.
He is a best-selling author of over 20 books, writes a regular column for Forbes and advises and coaches many of the world’s best-known organisations.
He has a combined following of 4 million people across his social media channels and newsletters and was ranked by LinkedIn as one of the top 5 business influencers in the world.
Bernard’s latest book is ‘Generative AI in Practice’.
Social Media