» Operating Margin

Operating Margin indicates how much profit a company earns from its core operations.

$$Operating\; Margin \mmlToken{mo}[linebreak="auto"]{=} \frac{Operating\;Income}{Net\;Sales}$$


Operating Margin FAQ

What is operating margin?

It measures how much profit a company earns from core operations.

How do you calculate it?

Divide operating income by net sales.