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an example of another profitability ratio is the operating profit margin operating profit margin formula is operating profit divided by sales we can get both operating profit and sales from the income statement letamp;#39;s calculate operating profit margin for the year 2018 we have EBIT that equals eight million dollars divided by sales of 50 million dollars which is equal to 16 percent the unit of operating profit margin is a percentage this means that for every dollar of sales the company generates a profit of 16 cents after paying off all operating costs for all profitability ratios generally the higher the better
