What is 'Profitability: Operating Profit Margin Earned' in SAP SRD-FIN-ACC - FIN-Financial Accounting?

Profitability: Operating Profit Margin Earned - Overview

• Component: SRD-FIN-ACC

• Component Name: FIN-Financial Accounting

• Description: A key performance indicator KPI that shows the ratio of operating profit to sales and considers earned values. It compares operating profit in different time periods for the same company or different companies. This KPI provides information on a company's ability to make a profit based on earned values.

Profitability: Operating Profit Margin Earned - Details

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  Key Concepts: 
  Profitability: Operating Profit Margin Earned is a measure of the profitability of a company's operations. It is calculated by dividing the operating profit by the total revenue earned. This metric is used to assess the efficiency of a company's operations and to compare it to other companies in the same industry.
  
  How to use it: 
  The Operating Profit Margin Earned can be used to evaluate the performance of a company's operations. It can be used to compare the performance of different companies in the same industry, as well as to assess the efficiency of a company's operations over time. It can also be used to identify areas where improvements can be made in order to increase profitability.
  
  Tips & Tricks: 
  When using this metric, it is important to remember that it does not take into account any non-operating expenses or income, such as interest income or taxes. Additionally, it is important to consider other factors such as the size of the company and its industry when comparing different companies.
  
  Related Information: 
  The Operating Profit Margin Earned is related to other profitability metrics such as Return on Assets (ROA) and Return on Equity (ROE). Additionally, it is related to other financial metrics such as Gross Profit Margin and Net Profit Margin.