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 Fool Articles
Related Community Blogs
Recent Mentions on Fool.com
- 1 U.S. Solar Company Just Took a Big Step Into China
- 5 Things Garmin Ltd.'s Management Wants You to Know
- Heartland Payment Systems, Inc. Aims at Big Players in Payment Processing
- Why Qualcomm Stock Is Too Cheap to Ignore
- 3 Convincing Reasons to Consider Buying Ares Capital Corp.'s Dividend Stock
- Westport Innovations Q3 Earnings: Major Changes Underway... but Is It Too Late?