The formula to calculate the Operating Profit Margin is:
\[ \text{Operating Profit Margin} = \frac{\text{Operating Income}}{\text{Sales}} \times 100 \]
Where:
The operating profit margin is a margin ratio used to measure a company's pricing strategy and operating efficiency.
Let's assume the following values:
Using the formula:
\[ \text{Operating Profit Margin} = \frac{2000}{1000000} \times 100 \]
Evaluating:
\[ \text{Operating Profit Margin} = 0.2 \]
The Operating Profit Margin is 0.2%.
| Operating Income ($) | Sales ($) | Operating Profit Margin (%) |
|---|---|---|
| 1000 | 100000 | 1.000000000000 |
| 1000 | 200000 | 0.500000000000 |
| 1000 | 300000 | 0.333333333333 |
| 1000 | 400000 | 0.250000000000 |
| 1000 | 500000 | 0.200000000000 |
| 2000 | 100000 | 2.000000000000 |
| 2000 | 200000 | 1.000000000000 |
| 2000 | 300000 | 0.666666666667 |
| 2000 | 400000 | 0.500000000000 |
| 2000 | 500000 | 0.400000000000 |
| 3000 | 100000 | 3.000000000000 |
| 3000 | 200000 | 1.500000000000 |
| 3000 | 300000 | 1.000000000000 |
| 3000 | 400000 | 0.750000000000 |
| 3000 | 500000 | 0.600000000000 |
| 4000 | 100000 | 4.000000000000 |
| 4000 | 200000 | 2.000000000000 |
| 4000 | 300000 | 1.333333333333 |
| 4000 | 400000 | 1.000000000000 |
| 4000 | 500000 | 0.800000000000 |
| 5000 | 100000 | 5.000000000000 |
| 5000 | 200000 | 2.500000000000 |
| 5000 | 300000 | 1.666666666667 |
| 5000 | 400000 | 1.250000000000 |
| 5000 | 500000 | 1.000000000000 |
