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.
Formula
OPP = (Sales - (Cost of Goods Sold + Sales, General and Administrative Expenses)) / Sales
Created: Jun 11, 2018
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