Operating margin

In business, operating margin — also known as operating income margin, operating profit margin and return on sales (ROS) — is the ratio of operating income ("operating profit" in the UK) divided by net sales, usually presented in percent.

${\displaystyle \mathrm {Operating\ margin} =\left({\frac {\mathrm {Operating\ income} }{\mathrm {Revenue} }}\right)}$

Net profit measures the profitability of ventures after accounting for all costs.

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