Financial Glossary

Operating Margin

Profitability

What is Operating Margin?

Operating income divided by revenue, expressed as a percentage. Measures core business profitability before interest and taxes.

Why Operating Margin matters

Isolates the profitability of core operations from financing decisions and tax jurisdictions.

Related terms in Profitability

Definitions are provided for educational and informational purposes only and are not investment advice. Consult a qualified financial advisor before making investment decisions.