Operating Profit Margin - Invoiced
| Name | Operating Profit Margin - Invoiced |
| Description | Relation of the Operating Profit Margin to Net Revenue: Shows how efficiently a company's management has been in generating income from the operation of the business. Only Considers invoiced values. |
| Interpretation | This indicator gives information on a company's profits ability based on invoiced values. Increase in Operating Profit Marin is mainly due to growth of net revenue, good cost control and strong productivity, Decrease in Operating Profit Margin largely results from reduction in revenue and higher operating costs. Operating Profit Margin is most useful when compared against other companies in the same industry. The higher Operating Profit Margin reflects the more efficient cost management or the more profitable business. If no positive Operating Profit Margin can be generated over a longer period, then the company should rethink the business model. Note: This margin can be used as relative indicator for international, cross-industry comparisons. Operating Profit Margin margin, however, varies greatly between industries, as factors both net revenue and Operating Profit directly impact on the Operating Profit Margin. E.g. retailers have quite a small Operating Profit Margin as they rely on small margins accompanied with high sales volume. Other industries would have small sales volume but expect to offset that with higher Operating Profit Margin. |
| Calculation Formula | Operating Profit Margin-Invoiced = ((Operating Profit-Invoiced) / (Net Revenue-Invoiced)) * 100% |
| Unit of Measure | % |
| Direction of Improvement | maximize |
| Industry Relevance | |
| Country Relevance |