# Operating Margin

### Definition of Operating Margin

Operating margin is a margin ratio used to measure a company's pricing strategy and operating efficiency. Operating margin is a measurement of what proportion of a company's revenue is left over after paying for variable costs of production such as wages, raw materials, etc.

### Formula for Operating Margin

$\text{operatingmargin =}\frac{\text{totaloperatingincome}}{\text{totalrevenue}}$

### Operating Margin Details

 Intrinio Tag Statements Calculations Templates Industrial Type Profitability Units Percentage Historical? Yes Screenable? Yes

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