Operating margin

Share of each sales dollar left as operating profit.

In simple terms: Money left after the costs of running the business, before interest and taxes.

Why should I care?

A company can grow sales without making much money. Margins show whether the business is actually converting sales into profit.

Calculated from reported figures

How it's calculated

Operating income ÷ Revenue

In general, a higher value is considered favourable — but always compare within the same industry, because what counts as “normal” varies widely.

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