Operating Profit Margin = (Operating Profit ÷ Revenue) × 100
Operating Profit = Gross Profit – Operating Expenses
Gross Profit = Revenue – Cost of Goods Sold (COGS)
Use operating profit from the income statement
Use total revenue from the same period
Divide operating profit by revenue
Multiply the result by 100 to get a percentage
Example: If Operating Profit is 20,000 and Revenue is 100,000, then Operating Profit Margin = (20,000 ÷ 100,000) × 100 = 20%