Operating margin is defined as:
A) operating income or loss divided by net sales revenues.
B) operating income or loss divided by total operating expenses.
C) net sales revenues divided by net income or loss.
D) net assets divided by net liabilities.

Question

Quizplus · Accepted Answer

Operating margin is calculated by dividing operating income or loss by net sales revenues. This ratio measures a company's operating efficiency and profitability by showing how much profit it generates from each dollar of revenue.

Operating Margin Is Defined As