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

PAYABLES TURNOVER is calculated: Payables Turnover = Purchases / Payables.

PURE COST is any direct readily verifiable cost assignable to the subject or item, e.g., the direct cost of producing a product.

Suggest a Term

Enter Search Term

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