The formula to calculate the Operating Profit Margin is:
\[ OPM = \frac{OI}{S} \times 100 \]
Where:
The Operating Profit Margin is a margin ratio used to measure a company's pricing strategy and operating efficiency.
Operating Income is the total income generated after operating expenses but before interest and taxes.
Sales is the total sales for the period.
Let's assume the following values:
Using the formula:
\[ OPM = \frac{2000}{1000000} \times 100 \]
Evaluating:
\[ OPM = \frac{2000}{1000000} \times 100 \]
The Operating Profit Margin is 0.2%.
| Operating Income | Sales | Operating Profit Margin (%) |
|---|---|---|
| 1000 | 900000 | 0.111111111111111 |
| 1000 | 950000 | 0.105263157894737 |
| 1000 | 1000000 | 0.100000000000000 |
| 1000 | 1050000 | 0.095238095238095 |
| 1000 | 1100000 | 0.090909090909091 |
| 1500 | 900000 | 0.166666666666667 |
| 1500 | 950000 | 0.157894736842105 |
| 1500 | 1000000 | 0.150000000000000 |
| 1500 | 1050000 | 0.142857142857143 |
| 1500 | 1100000 | 0.136363636363636 |
| 2000 | 900000 | 0.222222222222222 |
| 2000 | 950000 | 0.210526315789474 |
| 2000 | 1000000 | 0.200000000000000 |
| 2000 | 1050000 | 0.190476190476190 |
| 2000 | 1100000 | 0.181818181818182 |
| 2500 | 900000 | 0.277777777777778 |
| 2500 | 950000 | 0.263157894736842 |
| 2500 | 1000000 | 0.250000000000000 |
| 2500 | 1050000 | 0.238095238095238 |
| 2500 | 1100000 | 0.227272727272727 |
| 3000 | 900000 | 0.333333333333333 |
| 3000 | 950000 | 0.315789473684211 |
| 3000 | 1000000 | 0.300000000000000 |
| 3000 | 1050000 | 0.285714285714286 |
| 3000 | 1100000 | 0.272727272727273 |