In business, operating margin is the ratio of operating income (operating profit in the UK) divided by net sales, usually presented in percent. <math> \mathrm{Operating\ margin} = \left ( \frac {\mathrm{Operating\ income}}{\mathrm{Revenue}} \right )</math>
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Example
The Coca Cola Company
| Net Operating Revenues | $ 24,088 |
| Gross Profit | $ 15,924 |
| Operating Income | $ 6,318 |
| Income Before Income Taxes | $ 6,578 |
| Net Income | $ 5,080 |
(Relevant figures in italics) <math> \mathrm{Operating\ margin} = \left ( \frac {6,318}{24,088} \right )*100 = \underline{\underline{26.23 %}} </math>
See also
External links
References
- ^ The Coca Cola Company Form 10-K SEC Filing 2006, p 67
