Operating Expense Margin (OEM) is a measure of an organization’s performance that looks at the amount of money spent to generate profits. It is calculated by subtracting operating expenses from total revenue, then dividing it by the total revenue. OEM shows how effective an organization is in managing its costs in order to turn a profit. A high OEM indicates that the organization is using its resources efficiently and will be more profitable in the long run. On the other hand, a low OEM can be a sign of poor cost management or poor profitability. Keeping an eye on OEM can help organizations plan for future success.