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Profit margin
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=== Operating profit margin === [[Operating margin|Operating profit margin]] includes the cost of goods sold and is the earning before interest and taxes ([[Earnings before interest and taxes|EBIT]]) known as operating income divided by revenue. The COGS formula is the same across most industries, but what is included in each of the elements can vary for each. It should be calculated as:<!-- --> <math display="block">\text{Operating Profit Margin} = {100 \cdot \text{Operating Income}\over\text{Revenue}}</math> '''Example.''' If a company has $1,000,000 in revenue, $600,000 in COGS, and $200,000 in operating expenses. Operating profit is $200,000, and operating profit margin is (200,000 / 1,000,000) x 100 = 20%.
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