net operating margin

Definition

Net operating income divided by revenues, expressed as a percentage. This number is a measure of how profitably the company is operating.

Use this term in a sentence

If you want to figure out how much you need to earn then you need to know your net operating margin.

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The net operating margin was a really important thing for us to look into and I decided to change things up and approach it in a different way.

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My department manager asked me to prepare an analysis for our CEO listing the net operating margin for our department as compared to the company as a whole.

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net operating loss deduction net operating profit after tax (NOPAT)