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LEARN · FUNDAMENTALS

Operating margin

Operating margin is operating income divided by revenue — profit after COGS and operating expenses, before interest and taxes.

Open in Terminal ↗All terms →

Why it matters

It sits between gross margin and net margin. Mixing GAAP operating income with “adjusted EBIT” from a slide deck breaks comps.

How RomeWay uses it

Stock pages prefer tagged operating income and revenue from companyfacts. Missing tags stay —.

FAQ

Is operating margin the same as EBIT margin?: Often close, but EBIT definitions vary. Cite the XBRL tag you used.