Operating Profit Margin is one of the important Profitability ratio that every stakeholder pays a close attention to.
The company may have different Capital Structure which may lead to different Profitability ratio, Investors or Analysts generally look at the core Profitability of the company which is given by the Operating Profit margin.
High OP margin indicates better pricing power or better control over its Operating Costs.
The topic of Operating Profit Margin ratio covers this aspect in detail along with example formulas and application.
The formula for Operating Profit Margin is
(Operating Profit / Total Sales ) * 100
- This template helps to calculate the operating profit margin for any company.
- The main calculation sheet fetches the numerator and denominator from the financials and arrives at the ratio.
- Also, the file already has the financials of Walmart Inc for the sake of explaining the calculations.