Operating income ÷ revenue: profitability of the core business before interest and taxes.
What this ratio is
Operating Margin (Operating Margin): operating profit ÷ revenue, the profitability of the core business before interest and taxes.
How to read it
Profitability of the core business before interest and taxes. The cleanest measure of the quality of operations themselves.
Common mistake
It is affected by stock-based compensation counted in expenses at technology companies.
Where to see it on the platform
The fundamentals comparison page shows it for each company against the market median, under the “Profitability metrics” family, with five years of history and a trailing twelve-month window.
Questions about Operating Margin
What does Operating Margin mean?
Operating income ÷ revenue: profitability of the core business before interest and taxes.
How does Operating Margin appear on the trading platform?
It shows up as “cmp:operating_margin” (full term: Operating Margin), which is what you see in the options chain or the order screen.
