Operating Margin

Output: Press calculate

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Formula: Operating Margin = Operating Income / Total Revenue

Operating Margin is a profitability ratio that shows what percentage of a company's revenue is left over after paying for variable costs of production such as wages, raw materials, etc. It is a key indicator of a company's operational efficiency and its ability to turn sales into profit. This metric is particularly valuable for comparing companies within the same industry and for assessing operational efficiency over time.

Tags: Finance, Profitability, Operating Margin