Operating Margin Rate is a measure of profitability calculated by dividing operating income by total revenue. It is used to determine the health and stability of a business, as well as its ability to generate profits from its operations. A high operating margin rate indicates that a business is efficiently using its resources to produce a greater level of profits relative to its sales, while a low operating margin rate means it is not using those resources as effectively. By looking at the company’s operating margin rate over time, you can get an idea of how well managed the business is, providing valuable insight into its long-term viability.