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 ...

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 ...