GAAP (Generally Accepted Accounting Principles) Operating Margin is a measure of profitability that can be used to evaluate business performance. It’s calculated by dividing operating income (net income minus non-operating items like interest and taxes) by total revenue. This ratio gives investors and analysts an idea of how well a company is operating, both in terms of efficiency and effectiveness. A higher margin means more money is left over after expenses have been paid, and this can be indicative of a healthy business. On the other hand, a low margin could be a sign of trouble. So, if you’re looking to make an informed investment decision, make sure you understand what your company’s GAAP Operating Margin is telling you.