Operating cost profit margin
factor.formula
Operating Cost Profit Margin:
Where, Operating Cost =
This formula calculates the operating cost profit ratio of the trailing twelve months (TTM). The numerator is the net profit of the last twelve months, and the denominator is the operating cost of the last twelve months. This ratio reflects the net profit created by each unit of operating cost of the enterprise.
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Trailing Twelve Months Net Profit refers to the total profit of the company in the past 12 months.
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Trailing Twelve Months Operating Cost, including operating costs, sales expenses, administrative expenses and financial expenses.
factor.explanation
Operating Cost Profit Margin reflects the ability of an enterprise to create net profit by controlling and utilizing operating costs. A higher operating cost profit margin means that the enterprise can obtain higher profits with relatively low operating costs, showing stronger profitability and operating efficiency. This indicator has important reference value for evaluating the performance of different enterprises or the same enterprise in different periods in terms of operating cost control. The analysis should be interpreted in combination with industry characteristics and the specific operating model of the enterprise.