Operating margin is a profitability ratio that measures a company’s operating efficiency after cost of goods sold and operating expenses have been deducted from revenue. Operating income is ...

Several key profitability ratios are commonly used to assess a company’s performance. The most widely used include the gross profit margin, operating profit margin and net profit margin.

Definition: A profitability measure that evaluates the performance of a business by dividing net profit by net worth Return on investment, or ROI, is the most common profitability ratio.

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 ...