Calculating your operating margin is a simple but critical way to measure the profitability of your business. It’s the ratio of money earned after deducting all operational expenses, divided by total revenue. This number tells you how much of your total sales are turned into profit – and provides invaluable insight into the health of your business over time. It helps track performance goals and allows you to identify areas where costs could be reduced or efficiency maximized. Knowing your operating margin is essential for making sound decisions and achieving success in business.