Revenues from sales minus current cost of goods sold A measure of operating efficiency that is independent of the cost flow assumption for inventory Sometimes called "current (gross) margin "
A company's profitability after all operating costs have been paid Operating margin is calculated by dividing cash flow by revenue and then multiplying by 100 The result is expressed as a percentage Operating margin shows you how profitable a company is before interest expenses on debt and depreciation costs have been deducted Since accountants often manipulate depreciation and amortization costs on income statements, many analysts feel operating profit paints a truer picture of a company's profitability See Margins BACK TO TOP
this ratio indicates the percentage of net patient service revenue that remains as income after operating expenses, except interest expense have been deducted Calculation: Operating income (loss)/ (total operating revenue and non-operating margin)
The key measure of profitability and performance is a company's operating margin The operating margin is determined by subtracting the operating expenses from the total revenues and then dividing that result by the total revenue One time gains and losses, interest expenses, interest income, other income, and taxes are excluded from the operating margin
Calculated by adding total sales and other operating revenue, then subtracting cost of sales, amortization & depreciation, research & development, operation taxes (taxes other than income taxes), and other operating expenses (operating expenses not included in the other expense accounts, includes selling/general/administrative costs), then dividing by the sum of total sales and other operating revenue Expressed as a percentage The data will be quarterly or, if not available, the latest fiscal year data will be displayed
The operating margin of a company is a key measure of profitability and performance The operating margin is determined by deducting operating expenses (e g cost of goods and services, sales and marketing, general and administrative, and depreciation and amortization) from total revenues and then dividing the result by total revenues Note that operating margin excludes interest expense, interest income, other income, one-time gains or losses and taxes