Rörelsevinstmarginal

Rörelsevinstmarginal, known in English as operating profit margin, is a profitability ratio that measures how much profit a company makes from its core business operations. It is calculated by dividing operating income by revenue. Operating income, also referred to as operating profit or EBIT (earnings before interest and taxes), represents the profit a company generates after deducting all operating expenses, including cost of goods sold, salaries, rent, and depreciation, but before accounting for interest expenses and taxes.

The formula for rörelsevinstmarginal is:

(Operating Income / Revenue) * 100%

A higher rörelsevinstmarginal indicates that a company is more efficient at converting its revenue into profit from its primary business activities. It suggests strong cost management and pricing power. Conversely, a low or negative rörelsevinstmarginal might point to issues with operational efficiency, high production costs, or intense competition that forces lower prices.

This metric is particularly useful for comparing the operational performance of companies within the same industry, as it isolates the profitability of their core business from financing decisions and tax structures. Analysts and investors use rörelsevinstmarginal to assess a company's underlying profitability and its ability to generate cash flow from its operations. It provides insight into the sustainability of a company's earnings.