{"id":3976,"date":"2023-03-10T22:52:20","date_gmt":"2023-03-10T22:52:20","guid":{"rendered":"https:\/\/fisdomdevel.wpengine.com\/glossary\/operating-margin\/"},"modified":"2023-03-10T22:52:20","modified_gmt":"2023-03-10T22:52:20","slug":"operating-margin","status":"publish","type":"post","link":"https:\/\/www.fisdom.com\/glossary\/operating-margin\/","title":{"rendered":"Operating Margin"},"content":{"rendered":"<p>\nThe Operating Margin is defined as a company\u2019s profit after its cost of goods sold (COGS) and operating expenses are subtracted from the revenue generated.<br \/>\nOperating Margin is also known as the Operating profit margin. It represents a relationship between the operating income of a company or EBIT (Earnings before Interest and Taxes) and revenue to estimate the profits before paying off non-operating expenses. High Operating Margin is considered suitable for a business as it means that the business is functioning at an optimum level while utilising its resources efficiently.<\/p>\n<h2>How to calculate operating margin?<\/h2>\n<p>It can be calculated using the Sales and operating Income, as:<br \/>\nOperating Margin = Operating Income\/Revenue<br \/>\nor<br \/>\nOperating Margin = (Operating Profit\/Net Sales) x 100<\/p>\n<h2><\/h2>\n<h2><\/h2>\n<h2><\/h2>\n<h2><\/h2>\n","protected":false},"excerpt":{"rendered":"<p>The Operating Margin is defined as a company\u2019s profit after its cost of goods sold (COGS) and operating expenses are subtracted from the revenue generated. Operating Margin is also known as the Operating profit margin. It represents a relationship between the operating income of a company or EBIT (Earnings before Interest and Taxes) and revenue [&hellip;]<\/p>\n","protected":false},"author":67,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[11],"tags":[],"class_list":["post-3976","post","type-post","status-publish","format-standard","hentry","category-stocks"],"_links":{"self":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/3976","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/users\/67"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/comments?post=3976"}],"version-history":[{"count":0,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/3976\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/media?parent=3976"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/categories?post=3976"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/tags?post=3976"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}