Business Insights—Operating Profit Ratio

This window displays comparisons of operating profit for each month of the selected fiscal periods. The top half of the window shows amounts in a table format, the bottom half displays a line graph to represent the comparison. Operating Profit Ratios are calculated as follows:

Operating Profit Ratio = Operating Profit divided by Sales

For information about how amounts are calculated and defined, see Business Insights—Introduction.

Amounts shown in this window are color coded:

■	Green indicates an increase in the operating profit margin from the prior period. An increase in operating profit ratio means operational expenses may have reduced or operating profit has remained static but gross profit has increased.

■	Red indicates a decrease in the operating profit margin from the prior period. Look for opportunities to reduce expenses, or hold expenses at current levels and increase sales.

■	Blue means there has been no change in the operating profit from the prior period.

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Related Topics

■	Tracking financial information

■	Reviewing financial information