A company's operating margin is the profit it makes on a dollar of sales after accounting for the direct costs involved in earning the revenue.

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% ...

Learn about gross, operating, and net profit margins, how each is calculated, and how businesses and investors can use them to analyze a company’s profitability.

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 ...

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 ...

How to Calculate Merchandising Margin. The measure of profitability determines future outlook no matter the industry or size of the company. In the retail industry, companies purchase wholesale ...

Gross Profit Margin: Formula and Calculation. Using the following formula, you can easily calculate gross profit margin: Gross Profit Margin = (Revenue – Cost of Goods Sold) / Revenue x 100 ...

To calculate net profit margin requires a few more steps because, as explained above, you must deduct operating costs as well as the cost of goods sold. So: Revenue, £100,000 – cost of goods £55,000 – ...

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 ...

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 revenue ...