Businesspricing
Operating Margin Calculator
Operating profit as a share of revenue. The margin of the business itself, before financing structure and tax.
Also called: ebit margin calculator, operating profit percentage.
Operating margin
18%
Method and background
How this is calculated
EBIT over revenue. It strips out how the company is funded and where it is taxed, which is what makes it the right margin for comparing two businesses that made different financing choices.
operating_margin = ebit / revenue * 100- EBIT
- Earnings before interest and tax (currency)