A company's operating margin is the profit it makes on a dollar of sales after accounting for the direct costs involved in earning the revenue. Gross profit margin and operating profit margin are two metrics used to measure a company’s profitability. Gross profit margin measures production cost efficiency.

Understanding the Context

Operating profit margin includes ... The meaning of OPERATING is arising from, relating to, or used for or in the operations of something (as a business). How to use operating in a sentence. OPERATING definition: 1.

Income Expenses Profit Equation

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Income Expenses Profit Equation
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Key Insights

relating to the main business activities of a company: 2. working or being used: 3. relating…. Learn more. a.

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Final Thoughts

To exert an influence: forces operating on the economy. b. To produce a desired or proper effect: a drug that operates quickly. 4. To carry on a military or naval action or campaign. 5.

Informal To conduct business in an irregular or devious manner: drug dealers operating in residential and urban areas. OPERATING definition: used or engaged in performing operations. See examples of operating used in a sentence. Definitions of operating adjective involved in a kind of operation “the operating conditions of the oxidation pond” adjective being in effect or operation “the company had several operating divisions” of, for, or pertaining to operations: an operating budget.