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
- Amazon.com Inc Earnings: The Revenge of the Bulls
- Align Technology Misses the Mark With Q4 Report
- Gotcha, Wall Street! Falling Oil Prices Boost Dow Chemical Company Earnings
- 5 Things Verizon Communications Inc's Management Wants You to Know
- NetSuite Inc. Earnings: What the CEO Says About Beating SAP and Salesforce.com
- Check Point Software Technologies Ltd. Goes for Growth