Operating profit margin

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Operating profit margin is the ratio of earnings before interest and taxes divided by sales.

Definitions

According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),

Operating profit margin. Ratio of earnings before interest and taxes divided by sales.

Related concepts

Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.

Related lectures

Introduction to Financial Management.

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