Operating margin
Operating margin. This ratio measures operating income, or EBIT, per dollar of sales; it is calculated by dividing operating income by sales.
Definitions
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Operating margin. This ratio measures operating income, or EBIT, per dollar of sales; it is calculated by dividing operating income by sales.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
