Operating margin

Operating profit as a share of revenue: what is left after running the business, before interest and tax.

Formula

Operating margin = Operating income ÷ Revenue

How to use it

Operating efficiency; its trend matters as much as its level.

In Kereon

Investing · company. From the latest annual statement; the data vendor's figure where the statement lacks a line.

Also called: operating margin, margin trend, margin expansion.

Related terms

The whole glossary · Investing tools