Question

How to calculate operating profit ratio in ratio analysis?

Answer 1

The operating margin formula is calculated by dividing the operating income by the net sales during a period. Operating income, also called income from operations, is usually stated separately on the income statement before income from non-operating activities like interest and dividend income.

Answer 2

hey there!
Calculating the Operating Profit Margin Ratio

Find the company's operating income  by subtracting its operational expenses, allocated depreciation, and amortization amounts from gross income.

Find the company's  net sales revenue.

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