Trailing Twelve Months Operating Profit Margin
factor.formula
Rolling operating margin (TTM):
The formula calculates the rolling operating margin as follows:
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Indicates the cumulative operating profit in the last 12 months. Operating profit refers to the profit of a company after deducting operating expenses such as operating costs, sales expenses, administrative expenses, and research and development expenses, reflecting the profit obtained by the company through its main business.
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Indicates the cumulative operating income for the most recent 12 months. Operating income refers to the income a company earns from selling products or providing services.
factor.explanation
The rolling operating profit margin (TTM) is an important indicator to measure a company's profitability and operating efficiency. It reflects the company's profitability more comprehensively than the gross profit margin because it takes into account operating expenses. A higher operating profit margin usually means that the company has stronger cost control capabilities and operating efficiency, and can effectively convert sales revenue into profits. This indicator can be used for cross-company comparisons, or to track changes in profitability of the same company over different periods. In addition, this indicator plays an important role in DuPont analysis. By combining it with indicators such as asset turnover and equity multiplier, a company's financial status can be analyzed more comprehensively.