Operating Profit % (Bodyshop)

Operating Profit % (Bodyshop)

Operating Profit ÷ Turnover (x100)

Baseline: > 30%

Description:

Operating Profit is exactly the same as Departmental Profit and is calculated by taking Gross Profit minus Departmental Expenses. To make sense of this figure it is always expressed as a percentage of Turnover when used for trending as it is the direction of travel that is of most interest to you.

Example:

A) Operating Profit = R183,389
B) Departmental Turnover = R573,088
C) Operating Profit % = 32% (A ÷ B X 100)

Discussion:

Related Terminology:

The Operating profit of the Bodyshop is also called many other things such as, Direct Profit, and of course the bottom line.


» Motor Retail Terminology and Concepts