In business, operating margin, operating income margin, operating profit margin or return on sales (ROS) is the ratio of operating income (operating profit) divided by net sales, usually presented in percent.
It is a measurement of what proportion of a company's revenue is left over, before taxes and other indirect costs (such as rent, bonus, interest, etc.), after paying for variable costs of production as wages, raw materials, etc. A good operating margin is needed for a company to be able to pay for its fixed costs, such as interest on debt. A higher operating margin means that the company has less financial risk.
Operating Profit Rate = Operating Profit * 100
Net Revenue
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