Operating Margin — Operating income (revenue minus COGS and all operating expenses) as a percentage of revenue. Profitability before financial and tax effects.
Operating Margin = Operating Income / Revenue × 100Operating Margin = Operating Income / Revenue × 100
Company with $1B revenue, $400M COGS, $300M operating expenses → $300M operating income → 30% operating margin.
On the Profitability card alongside gross and net margin. The trend over 5 years matters more than the absolute level.
The Operating Margin metric shows up on every IndexAlpha research page. See it now on GOOGL — or research any stock to view its Operating Margin.
Operating income (revenue minus COGS and all operating expenses) as a percentage of revenue. Profitability before financial and tax effects.
Operating Margin = Operating Income / Revenue × 100. Company with $1B revenue, $400M COGS, $300M operating expenses → $300M operating income → 30% operating margin.
On the Profitability card alongside gross and net margin. The trend over 5 years matters more than the absolute level.