Final answer:
Operating profit benchmarks are standards used to evaluate a company's profitability and efficiency, with metrics like profit margins, productivity growth, and overall profits being crucial. For S&P 500 companies, profits grew by 9.7% after the 2009 recession, indicating successful cost management and productivity improvements.
Step-by-step explanation:
In the context of business performance, operating profit benchmarks refer to standards or points of reference used to gauge a company's operating efficiency or profitability. These benchmarks are typically derived from the analysis of financial statements of companies, often within the same sector, to identify patterns and standards that reflect efficient operations. In the case of the S&P 500 companies mentioned, we see that between the end of the recession in 2009 and the second quarter of 2013, these companies' profits increased by 9.7% as illustrated by the Wall Street Journal. This growth was driven in part by cost cutting and reductions in input costs, despite the weak economy at that time. Figure 17.2 also indicates that corporate profits recovered and surpassed pre-recession levels after a steep decline in 2008.
Profit margins, productivity growth, and absolute profits typically serve as important metrics in evaluating operating profit benchmarks. A profit margin, for instance, provides insight into the percentage of revenue that remains as profit after all expenses are paid. Such data helps in identifying whether a firm's profit levels are in line with industry or sectoral benchmarks. On the other hand, productivity measures the efficiency of a company's production process, which directly impacts its profitability.