The Operating Profit Margin ratio indicates how much profit a company makes after paying for variable costs of production such as wages and raw materials, but before paying interest or tax. It is calculated by dividing a company’s operating profit by its net sales. <br /> <br />Check out Investology by Edelweiss to learn more about fundamental stock analysis and technical stock analysis: <br />https://www.edelweiss.in/investology/fundamental-analysis-218cf3 <br />https://www.edelweiss.in/investology/technical-analysis-2c8d50 <br /> <br />How to calculate Operating Profit Margin? <br /> <br />To calculate a company's operating profit margin ratio, divide its operating income by its net sales revenue: <br /> <br />Operating Profit Margin = Operating Income / Sales Revenue
