oboloo Glossary

Operating Income Margin Formula

oboloo Glossary

Operating Income Margin Formula

Operating Income Margin is a financial metric that measures a company’s profitability by taking its operating income and dividing it by the company’s revenue. It indicates how efficient a company is at generating profits from its operations. The formula for calculating Operating Income Margin is: Operating Income Margin = (Operating Income / Revenue) x 100. Operating Income Margin can help investors evaluate a company’s operational performance and compare the company to its competitors. Analyzing this metric can give you an idea of how well the company is managing its operations, expenses, and revenues.