Operating income measures a company’s efficiency and performance and is the profit after operating expenses have been subtracted from gross profit. Before delving further into operating income ...

Gross profit margin, operating profit margin, and net profit margin are the three main margin analysis measures that are used to analyze the income statement activities of a firm. Each margin ...

Enterprises operating multiple business divisions ... have high turnaround and revenue, which can mean overall high profits but low profit margins. High-end luxury goods, by comparison, may ...

Operating income is often used interchangeably with the acronym EBIT, which stands for earnings before interest and tax, and that is the reason EBIT margin is often referred to as operating margin.