OPERATING PROFIT TO SALES Definition

Bookmark and Share

OPERATING PROFIT TO SALES is a useful ratio when evaluating value of a firm. It discounts the effect of varying tax rates and benefits to give a more accurate indication of the return associated with the firm. Operating Profit (EBITDA) / Net Revenues.

Learn new Accounting Terms

VALUE ADDED is the difference, at each stage of production or the provisioning of a service, between the price of a product or service and all materials or activities paid for to produce the product or provide the service.

NET LOSS is the amount by which total of costs and expenses exceeds total revenue in an accounting period.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.