← Glossary
Operating margin
Operating margin strips out financing and tax decisions to show how profitable the underlying business is at running itself: paying for sales, R&D, and administration out of what it makes selling its product. It sits between gross margin (before overhead) and net margin (after everything, including one-off items).
Operating margin = Operating income / RevenueSee also
This explains what operating margin measures. It isn't investment advice — see the disclaimer.