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Financial Analysis

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  • April 13, 2023
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Operating Profit on Turnover

A profitability ratio that reflects a company’s efficiency as to generating profits from its operations. It measures the percentage of sales revenue (profit margin) that remains after deducting the cost of goods sold (COGS) and operating expenses. In calculation, it is operating profits divided by sales revenue:

Operating profit on turnover = operating profits/ sales revenue

This financial ratio is also known as operating margin or operating profit margin.


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