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单词 Operating Margin
释义

Operating Margin
A ratio used to measure a company's pricing strategy and operating efficiency.

Calculated as:





Operating margin is a measurement of what proportion of a company's revenue is left over after paying for variable costs of production such as wages, raw materials, etc. 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" or "net profit margin".

Investopedia Says:
Operating margin gives analysts an idea of how much a company makes (before interest and taxes) on each dollar of sales. When looking at operating margin to determine the quality of a company, it is best to look at the change in operating margin over time and to compare the company's yearly or quarterly figures to 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%, this 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 operating margin calculation because they don't represent a company's true operating performance.

Related Terms:
Contribution Margin
Fixed Cost
Last Mile
Margin Pressure
Net Sales
Nonrecurring Charge
Operating Expenses
Operating Income
Revenue
Variable Cost

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更新时间:2025/3/9 22:20:46