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Home > QFINANCE Dictionary > Definition of operating margin

Definition of

operating margin

Accounting

profit calculated as sales minus cost of sales sales less cost of sales, expressed either as a value or as a percentage of sales value. The operating margin may be calculated at different stages, for example, either net or gross. The level of profit reported is also influenced by the extent of the application of accounting conventions, and by the method of product costing used, for example, marginal or absorption costing.

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Definitions of ’operating margin’ and meaning of ’operating margin’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’operating margin’ and other financial terms with our online QFINANCE Financial Dictionary.

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