Operating profit margin
What Operating profit margin means in Economics B A-Level, as defined for Pearson Edexcel.
Definitions of Operating profit margin
Exam boards and our study guides word this term in slightly different ways. Learn the version your board uses.
Check what you remember
Read the wording for your board, then hide it and explain Operating profit margin in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Pearson Edexcel
The proportion of revenue that remains after deducting both the cost of sales and operating expenses, but before interest and tax are paid, calculated as (Operating Profit / Revenue) x 100%.
Operating profit divided by revenue multiplied by 100, revealing how well a business controls its day-to-day overheads and operating expenses.
Topics that use Operating profit margin
- Appendix 4: Accounting ratios (Pearson Edexcel A-Level)
- Profit and loss (Pearson Edexcel A-Level)
Related terms
- Gross profit margin
- Financial performance
- Market entry
- Market exit
- Operating profit
- Profit for the year margin
- Profitability
- Profitability ratios
Using Operating profit margin in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
Practise Economics B questions
Create a free account to answer exam-style questions on this topic and get feedback on your answers.
A week of Premium from your first lesson · Then the free plan continues · No card, no charge