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Operating margin

Index Operating margin

In business, operating margin—also known as operating income margin, operating profit margin and return on sales (ROS)—is the ratio of operating income ("operating profit" in the UK) to net sales, usually presented in percent. [1]

17 relations: Business, Capital (economics), Earnings before interest and taxes, Earnings before interest, taxes, depreciation, and amortization, Efficiency ratio, Gross profit, Incremental operating margin, Investment, Marketing Accountability Standards Board, Net income, Net profit, NOPAT, Operating cash flow, Profit (accounting), Profit margin, Revenue, United Kingdom.

Business

Business is the activity of making one's living or making money by producing or buying and selling products (goods and services).

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Capital (economics)

In economics, capital consists of an asset that can enhance one's power to perform economically useful work.

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Earnings before interest and taxes

In accounting and finance, earnings before interest and taxes (EBIT) is a measure of a firm's profit that includes all expenses except interest and income tax expenses.

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Earnings before interest, taxes, depreciation, and amortization

A company's earnings before interest, taxes, depreciation, and amortization (commonly abbreviated EBITDA, pronounced,, or) is an accounting measure calculated using a company's net earnings, before interest expenses, taxes, depreciation, and amortization are subtracted, as a proxy for a company's current operating profitability (i.e., how much profit it makes with its present assets and its operations on the products it produces and sells, as well as providing a proxy for cash flow).

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Efficiency ratio

The efficiency ratio indicates the expenses as a percentage of revenue (expenses / revenue), with a few variations – it is essentially how much a corporation or individual spends to make a dollar; entities are supposed to attempt minimizing efficiency ratios (reducing expenses and increasing earnings).

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Gross profit

In accounting, gross profit, gross margin, sales profit, or credit sales is the difference between revenue and the cost of making a product or providing a service, before deducting overheads, payroll, taxation, and interest payments.

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Incremental operating margin

Incremental operating margin is the increase or decrease of income from continuing operations before stock-based compensation, interest expense and income-tax expense between two periods, divided by the increase or decrease in revenue between the same two periods.

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Investment

In general, to invest is to allocate money (or sometimes another resource, such as time) in the expectation of some benefit in the future – for example, investment in durable goods, in real estate by the service industry, in factories for manufacturing, in product development, and in research and development.

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Marketing Accountability Standards Board

The Marketing Accountability Standards Board (MASB), authorized by the Marketing Accountability Foundation,MASB.

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Net income

In business, net income (total comprehensive income, net earnings, net profit, informally, bottom line) is an entity's income minus cost of goods sold, expenses and taxes for an accounting period.

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Net profit

Net profit, also referred to as the bottom line, net income, or net earnings is a measure of the profitability of a venture after accounting for all costs and taxes.

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NOPAT

In corporate finance, net operating profit after tax (NOPAT) is a company's after-tax operating profit for all investors, including shareholders and debt holders.

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Operating cash flow

In financial accounting, operating cash flow (OCF), cash flow provided by operations, cash flow from operating activities (CFO) or free cash flow from operations (FCFO), refers to the amount of cash a company generates from the revenues it brings in, excluding costs associated with long-term investment on capital items or investment in securities.

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Profit (accounting)

Profit, in accounting, is an income distributed to the owner in a profitable market production process (business).

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Profit margin

Profit margin, net margin, net profit margin or net profit ratio is a measure of profitability.

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Revenue

In accounting, revenue is the income that a business has from its normal business activities, usually from the sale of goods and services to customers.

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United Kingdom

The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain,Usage is mixed with some organisations, including the and preferring to use Britain as shorthand for Great Britain is a sovereign country in western Europe.

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Redirects here:

Operating Margin, Operating profit margin, Return on Sales, Return on sales.

References

[1] https://en.wikipedia.org/wiki/Operating_margin

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