Definition
Operating income divided by revenue, showing profitability from core operations before non-operating items.
In Practice
The owner compares operating margin over time after accounting for direct costs and operating overhead.
Operating margin is operating income divided by revenue, showing profitability from core operations before non-operating items.
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Operating income divided by revenue, showing profitability from core operations before non-operating items.
The owner compares operating margin over time after accounting for direct costs and operating overhead.