Operating Margin
Definition
A profitability ratio showing the percentage of revenue remaining after operating expenses are deducted, reflecting core business efficiency before interest and taxes.
Formula / Rules
Operating Income / Revenue × 100
Example
Operating income of $150,000 on $1,000,000 revenue yields 15% operating margin.
Related Terms
Frequently Asked Question
What is Operating Margin?
Operating Margin is a profitability ratio showing the percentage of revenue remaining after operating expenses. It reflects how efficiently a company runs its core business before interest and taxes.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.