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| Operating Profit Margin is calculated as Operating Profit divided by Revenues for a given period. Operating profit margin indicates how effective a company is at controlling the costs and expenses associated with their normal business operations, assuming the Gross Profit Margin to be reasonably constant. |
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Operating Profit Calculator |
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| Cash businesses, such as shops, should have a very low debt collection days figure, as they get their money at the time of sale. Non-cash business have to operate in a credit environment, so whilst the ideal figure would be 30 days it is more likely to be nearer 60 days. | |||||
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