Operating Margin
The share of revenue left after all operating costs, showing how profitable the core business is before interest and taxes.
What it is
Operating margin measures profit from a company's core operations as a percentage of revenue. It starts from revenue and subtracts both the direct cost of goods and operating expenses such as salaries, marketing, research, and overhead, but excludes interest and taxes. The result, operating income, is also called EBIT (earnings before interest and taxes).
Why it matters
Operating margin shows how efficiently a company runs its actual business, separate from how it is financed or taxed. Because it strips out interest and tax effects, it allows cleaner comparisons between companies with different debt loads or tax situations. A common pitfall is that one-time charges or unusual items can be buried in operating expenses, so it helps to check whether a margin move is structural or a one-off.
How it's calculated
Divide operating income (revenue minus cost of goods sold and operating expenses) by revenue, expressed as a percentage.
How Quintarthai uses it
Operating margin appears in the profitability ratios on the Ratios tab and can be tracked across the 10-year income statement on a company's deep-analysis page.