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Operating profit percentage calculator
The operating profit percentage ratio compares sales to operating
profit. Operating profit is what's left from your sales dollar after
you've deducted your cost of goods sold and your ordinary operating
costs.
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How to use this calculator
Your most recent income statement provides the numbers
you need to calculate your operating profit percentage.
- Fill in your operating profit.
- Fill in your sales.
- Press "calculate."
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Your operating profit percentage tells you the percentage
of your sales that turn into profit. Because the
figure excludes miscellaneous income and tax expenses,
the operating profit percentage produces an accurate
picture of the profitability of your primary business.
Reductions in this figure over time might indicate
a need to re-evaluate your pricing or your suppliers,
or look for ways to cut down on your operating expenses.
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