In business terms operating margin also known as operating profit margin or operating income margin can be defined as operating profit to the net sales which is usually presented in percentage.



operating margin=operating income/Revenue


operating profit is a net profit that measures profitability of a company or a business after accounting overall costs.

The main purpose of the operating margin is to measure the profit of a particular business.It is a deciding factor to decide whether a business is in profit or loss.

Every company OR business is a group of projects and different sections and every section of the business performance can be measured individually.


Basically it measures the fundamental profitability of the business.