Financial Ratios
Operating Margin
Definition
What is Operating Margin?
Operating profit expressed as a percentage of revenue.
Example in practice
How This Looks in Practice
₦200 million operating profit on ₦1 billion revenue equals a 20% operating margin.
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Related Terms
Financial Ratios
Gross Margin
Gross profit expressed as a percentage of revenue.
Financial RatiosEBITDA Margin
EBITDA expressed as a percentage of revenue.
Financial RatiosNet Profit Margin
Net income expressed as a percentage of revenue.
Equity ValuationEarnings Per Share
Net income attributable to ordinary shareholders divided by weighted average ordinary shares.