Operating Profit Margin
Operating profit as percentage of revenue.
Formula
Operating Profit Margin = (Operating Profit ÷ Revenue) × 100
Real World
Apple consistently achieves an operating profit margin above 30%, meaning for every £1 of revenue, over 30p comes from core operations — far above most smartphone rivals.
Exam Focus
When 'evaluating' margin changes, always consider both the numerator and denominator — revenue falling can worsen margin even if costs are controlled.
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