Operating Profit Margin
Operating profit as percentage of revenue.
Formula
Operating Profit Margin = (Operating Profit ÷ Revenue) × 100
Real World
Ryanair targets a high operating profit margin by ruthlessly cutting operating costs — fuel hedging, ancillary fees, and fast turnarounds — relative to its ticket revenue.
Exam Focus
Link margin changes to specific cost or revenue drivers rather than simply stating it has 'increased' or 'decreased'.
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