Operating margin

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Operating margin. This ratio measures operating income, or EBIT, per dollar of sales; it is calculated by dividing operating income by sales.


Definitions

According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),

Operating margin. This ratio measures operating income, or EBIT, per dollar of sales; it is calculated by dividing operating income by sales.

Related concepts

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