operating margin

Definition

Operating income divided by revenues, expressed as a percentage.

Use operating margin in a sentence

You need to try and make sure that you always are on the right side of your operating margin to insure greater profit.

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The operating margin was an especially useful metric or ratio during the meeting as we wanted the discussion to include revenue statistics.

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My company's CEO was fired because he spent a lot more money than our competitors and wasn't able to bring our operating margin even with theirs.

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operating leverage margin