Katelynn's Report

Katelynn's Report

(US Market)

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Operating Margin

Operating margin measures the profitability of a business in terms of the percentage of revenue that can be retained after deducting operating costs and expenses. Different from Net Profit Margin, operating margin does not consider interest expenses, tax, and non-operating gain/loss. In Katelynn's Report, operating margin is calculated as Trailing 12 months Operating Income/Total Revenue * 100%. Higher operating margin represents better performance (higher quantile ranking).

Operating margin varies widely between sectors and industries. So it generally does not make sense to compare operating margins of companies from different sectors, or different industries. However, it is meaningful to compare their performance relative to industry/sector peers through Performance Monitor.