What is the definition of Op Profit?
Operating Profit - or Operating Income - is a measure of a company's earning power from ongoing operations, calculated as the difference between operating revenues and operating expenses. When a firm has zero non-operating income, then operating income is equal to EBIT (earnings before deduction of interest payments and income taxes).
What is the definition of Op Mgn %?
Operating profit margin, also known as return on sales (ROS) is the ratio of operating profit (the amount that is left over after the variable costs of production such as wages, and raw materials have been paid) divided by sales. A healthy operating margin is required for a company to be able to pay for its fixed costs, such as interest on debt.
A company's operating margin is most meaningfully compared against other companies in its own industry, as they will likely share similar cost structures. It is a good way to compares the quality of a company's activity to its competitors, specifically the company's pricing strategy and operating efficiency.
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