Answer to Question #103110 in Finance for Camille Wilson

Question #103110
Why is the operating profit margin often more informative than the net profit margin?
1
Expert's answer
2020-02-17T08:46:28-0500

The operating profit margin is more informative that the net profit margin because it also accounts for operating costs. This shows the efficiency of the company and the strength of the management team in controlling costs such as salaries and rent.


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