Operating Margin

Business, Legal & Accounting Glossary

Definition: Operating Margin


Operating Margin

Quick Summary of Operating Margin


Operating profit as a percentage of sales.




Full Definition of Operating Margin


Operating margin is defined as Operating Profit divided by Revenue (or Sales).

<math>Operating\ Margin=Operating\ Profit / Revenue</math>

Operating margin is expressed as a percent of revenue and is the amount of profit you have for each $1 in sales after deducting all expenses other than interest and taxes.


Related Phrases


Operating profit
Gross margin
Margin
Net margin


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Definition Sources


Definitions for Operating Margin are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 6th August, 2021 | 0 Views.