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Small Business Guide 
Managing Your Business Finances Analyzing Your Financial Position Business Ratios Profitability Ratios Operating Profit Percentage
Managing Your Business Finances Analyzing Your Financial Position Business Ratios Profitability Ratios Operating Profit Percentage
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PrintOperating Profit Percentage
The operating profit percentage can be calculated using the following formula, with figures taken from your income statement:
Operating Income / Sales = Profit Percentage
This ratio is designed to give you an accurate idea of how much money you're making on your primary business operations. It shows the percentage of each sales dollar remaining after all normal costs of operations. By looking at this ratio over time, you can get a fix on whether your overall costs are trending up or down.
