Operating Margin (%)

Also called EBIT Margin.

Operating margin = Operating Profit/Turnover

Operating Margin shows the proportion of sales that remains after all operating expenses and before financial expenses and tax.

Things to keep in mind

• A higher margin is usually positive as it shows that a company is increasing its earnings against its turnover.
• Industries with large costs often have a low EBIT margin.

Related ratios

• Gross margin (%)
• Profit margin (%)
• EBITDA margin (%)