Operating Margin

Definitions

1. Operating income expressed as a percentage of revenue, showing how much profit remains after normal operating costs but before interest and taxes. It is a core metric for comparing operating efficiency across businesses.

   In plain English: The percentage of revenue left after normal operating costs are paid.

   Example: "Operating margin improved after support automation reduced service costs."

Related Terms

• Contribution Margin
• Cost of Goods Sold
• Cost of Revenue
• EBITDA
• Gross Margin
• Break-Even
• Operating Leverage
• Profit Margin
• Variable Cost