Operating Margin financial definition of Operating Margin. Operating Margin finance term by the Free Online Dictionary.

Profit Margin

A measure of how well a company controls its costs. It is calculated by dividing a company's profit by its revenues and expressing the result as a percentage. The higher the profit margin is, the better the company is thought to control costs. Investors use the profit margin to compare companies in the same industry and well as between industries to determine which are the most profitable.

Operating Margin

What Does Operating Margin Mean?

A ratio used to measure a company's pricing strategy and operating efficiency. It is calculated as shown here:

Operating margin is a measurement of the proportion of a company's revenue that is left over after variable costs of production such as wages, and raw materials have been paid. A healthy operating margin is required for a company to be able to pay for its fixed costs, such as interest on debt. Also known as operating profit margin and net profit margin.

Investopedia explains Operating Margin

The operating margin gives analysts an idea of how much a company makes (before interest and taxes) on each dollar of sales. In evaluating the quality of a company, it is best to look at the change in operating margin over time and compare the company's yearly or quarterly figures with those of its competitors. If a company's margin is increasing, it is earning more per dollar of sales. The higher the margin, the better. For example, if a company has an operating margin of 12%, that means that it makes $0.12 (before interest and taxes) for every dollar of sales. Often, nonrecurring cash flows such as cash paid out in a lawsuit settlement are excluded from the calculation of operating margin because they do not represent a company's true operating performance.

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Contribution Margin Net Operating Margin Net Sales Operating Cash Flow Operating Expense operating income Operating Profit OPEX profit margin Variable Cost			While total invoicing declined, in line with global economic trends, I am pleased with the continued expansion of our operating margin. Novel profit beats expectations but shares fall 6 pct by International Business Times - US ed. The operating margin before non-recurrent items was 5. Tyre maker Michelin reports flattened profits by AFP / AFP Global Edition Operating income is required to determine operating margin along with net sales. Stock Investing for Dummy - What Are Operating Expenses, Operating ... by Mike Ashley / Finance and Investment community			Operaciones de mercado abierto Operaciones poscierre Operador Operador de inversores institucionales Operador de la punta contraria Operador de valores Operador especializado en bonos operating and easement agreement Operating Assets operating budget operating capital Operating Cash Flow Operating Cash Flow Ratio Operating Company Operating Cycle Operating Expense operating expense escalation operating expense ratio operating expenses Operating Exposure Operating in the Red operating income operating lease operating leverage Operating Loss Operating Margin Operating Profit Operating Profit Margin Operating Rate Operating Ratio Operating Ratios Operating Revenue Operating Risk Operating Statement operating statements Operating Unit operation de sauvetage Operation financiere Operation Iraqi Freedom operation of law Operational Audit Operationally efficient market Operations Department Operations research Operator Operazione di copertura Operazioni a termine OPEX Opinion Opinion del asesor Opinion legal			operating instructions operating instructions Operating Internal Pressure Operating Issues Work Group Operating Juniper Networks Routers Operating lease Operating Leases Operating leasing Operating Level Operating Level Agreement Operating Level Days operating level of supply operating lever Operating leverage Operating Leverages Operating License Operating life Operating life operating light operating light operating light operating light Operating Limit Operating Limited Partnership operating line Operating Location operating loss Operating Losses Operating Manual Operating Margin Operating Margins Operating Margins Operating Materials & Supplies Operating Measurement System Operating Methods operating microscope operating microscope operating microscope Operating Missions as a Node on the Internet Operating Nuclear Facility Safety Operating Parameter Limit Operating Partnership Unit Operating Period Operating Permit to Construct Operating Plan Operating Plan and Budget operating point operating position operating power Operating Pressure Operating Pressure Operating Pressure Ratio Operating Problems Requiring Research & Development operating procedure operating procedure operating procedure operating procedure operating procedure Operating Procedures Outline Sheet Operating Profit