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Operating Profit Percentage:
What does Operating Profit Percentage mean?
The Operating Profit Percentage reveals the return from standard operations, excluding the impact of extraordinary items and other comprehensive income. It shows the extent to which a company is earning a profit from standard operations, as opposed to resorting to asset sales or unique transactions to post an ‘artificial’ profit.
OPP = (Sales - (Cost of Goods Sold + Sales, General and Administrative Expenses)) / Sales