5Y Avg Operating Profit Margin
Average operating profit margin – 5 year is the average of the operating profit margin over the previous 5 financial years
Operating profit margin helps understand the number of units of operating profit earned for every Rs.100 revenue
Averaging historical numbers smoothes any distortions in operating profit margin due to sudden spike or drop in operating costs of the company. It also facilitates easy comparison of number of years of data for multiple companies
Add a comment