Operating Margin %
View All TermsOperating margin - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of {Operating Income} divided by net sales or {Revenue}, usually presented in percent. It is calculated as
Operating Margin
= {Operating Income} / {Revenue}
= ({Revenue} - {Cost of Goods Sold} - {Selling, General, & Admin. Expense} (SGA) - {Research & Development} - {Depreciation, Depletion and Amortization}) / {Revenue}
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