operating profit margin

USAGE SUMMARY

"operating profit margin" is correct and usable in written English. You can use it when discussing a company's profitability in relation to its operating income. For example, "The company's operating profit margin improved significantly this quarter." Alternative expressions include "operating margin" and "operating income margin."

✓ Grammatically correct

News & Media

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

AWS is the most profitable segment for Amazon, with a 26% operating profit margin for Q4'17.

Forbes

Nissan's latest operating profit margin is about 11%, making it the world's most profitable volume carmaker.

The Economist

Operating profit margin increased 0.3 percentage points.

Harvard Business Review

They included net account receivables, net worth, net sales, gross margin, and operating profit margin.

The New York Times

McClatchy's operating profit margin was 22.8percentt last year, compared with Knight Ridder's 16.4percentt.

The New York Times

The company's operating profit margin fell to 6.6percentt in 2013 from 7.3percentt in 2011.

The New York Times - Magazine

As a consequence, the latest results show its operating profit margin has surged to 17%, from negative territory in 2008.

The Economist

"At the same time ongoing action to improve efficiencies will result in an increased adjusting operating profit margin," Informa added.

The Guardian

Times executives say the paper still has a double-digit operating profit margin, though the number has dropped steeply.

The New York Times

First-quarter operating profit margin increased 11.7 percentage points -- to 29.1percentt from 17.4percentt a year earlier.

The New York Times

The company's operating profit margin rose to 9.7percentt for the quarter, from 8.9percentt during the 1998 period.

The New York Times

Expert writing Tips

Best practice

When comparing the "operating profit margin" of different companies, ensure they are in the same industry. Different industries have inherently different margin profiles.

Common error

Don't use "operating profit margin" and net profit margin interchangeably. "Operating profit margin" focuses solely on profits from core business operations, while net profit margin considers all revenues and expenses, including interest and taxes.

Linguistic Context

The phrase "operating profit margin" functions as a noun phrase that quantifies a company's profitability from its core business activities. Ludwig's examples show its use in financial reports and analyses to assess business performance.

Expression frequency: Very common

Frequent in

News & Media

60%

Formal & Business

30%

Science

10%

Less common in

Academia

0%

Encyclopedias

0%

Wiki

0%

Ludwig's WRAP-UP

The phrase "operating profit margin" is a very common noun phrase used to assess a company's profitability from its core operations. Ludwig AI indicates that the phrase is grammatically correct and widely used in business and finance. It is most frequently found in news and media sources as well as formal business documents. Related phrases include "operating margin" and "profit margin". A key writing tip is to avoid confusing it with net profit margin, which includes non-operating items. The "operating profit margin" is a critical metric for comparing companies within the same industry.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

operating margin

Shorter version of the phrase, omitting "profit" but retaining the same meaning.

operating income margin

Uses "operating income" instead of "operating profit", conveying the same meaning.

profit margin

Focuses on the overall profit without specifying it's related to operations.

EBIT margin

Abbreviation for Earnings Before Interest and Taxes margin, a similar profitability metric.

return on sales

Alternative metric focusing on the return generated from sales.

pre-tax profit margin

Profit margin calculated before the deduction of income taxes.

net profit margin

Considers net profit after all expenses, including non-operating items.

earnings margin

A general term indicating the proportion of earnings relative to revenue.

gross profit margin

Measures profitability before operating expenses are deducted.

profitability ratio

A more general term referring to any ratio that assesses a company's ability to generate profit.

FAQs

How is "operating profit margin" calculated?

The "operating profit margin" is calculated by dividing operating profit (revenue minus cost of goods sold and operating expenses) by revenue, then multiplying by 100 to express it as a percentage.

What is a good "operating profit margin"?

A "good" "operating profit margin" varies by industry, but generally, a higher margin indicates better profitability and efficiency. Comparing a company's margin to its competitors is useful.

What does a declining "operating profit margin" indicate?

A declining "operating profit margin" may signal rising operating expenses, lower sales prices, or decreased efficiency in managing costs. It warrants further investigation into the company's financial performance.

Is "operating margin" the same as "operating profit margin"?

Yes, "operating margin" is often used as a synonym for ""operating profit margin"". Both terms refer to the same financial ratio that measures a company's profitability from its core operations.