To calculate operating margin, compute the operating income. Starting with net sales for the accounting period, subtract the cost of goods sold, selling costs, administrative costs, ...

The simple equation to calculate operating margin is: Operating Margin = (Operating Income / Net Sales) x 100. Let's take a look at a real-world example from Apple's ...

Now you have all the information you need to calculate your business’s operating profit margin. (Operating income / Revenue) x 100 = Operating profit margin ($275,000 / $750,000) x 100 = 37% ...

A 2015 report put the average gross profit margin for companies with market capitalization exceeding $1 billion at 42%, operating margin 13% to 14%, and net profit margin 7%. Having a margin at or ...

EBITDA margin is a financial metric used to assess a company’s profitability before accounting for interest, taxes, depreciation and amortization. This measure represents the percentage of ...

Net profit margin shows how much revenue a company retains as profit after expenses. To calculate, subtract all expenses from revenue and divide by revenue, multiply by 100. High net profit margin ...

Gross margin represents the amount of total sales revenue that a company retains after incurring the direct costs associated with producing the goods sold by the company.

Operating margin and EBITDA are two measures of a company's profitability. They are related but provide investors and analysts with different insights into the financial health of a company.

Operating profit margin is a concise measure of how much your company actually earns at the end of the day. It is expressed as a percentage, showing what portion of your company's revenue actually ...

EBITDA margin, by comparison, takes into account a broader range of operating expenses, while still excluding purely financial and accounting matters such as interest, taxes, depreciation and ...