PLAIN-LANGUAGE DEFINITION
Operating Profit expressed as a percentage of Revenue. Shows efficiency at converting revenue into profit from core business activities, before interest and taxes.
What to check
Compare the value against the same period last year and check which costs it includes.
Where this connects to Impresa
You may encounter this concept when reviewing Financial Health. Start with the underlying inputs and check the applicable reporting period before interpreting the result.
Read the Financial Health guideA NOTE ON INTERPRETATION
NEXT DEFINITIONContribution Margin ↗Definitions here explain the concept. Accounting treatments, formulas, and industry comparisons may vary. Use your own records and qualified advice for material decisions.