Operating Margin
After paying for what you sold AND all overhead, what percentage of sales is left? Same as Operating Profit Margin.
- How it's worked out
- (Operating Profit / Sales) × 100
- Which way is better
- Higher is betterHigher is better for cash.
Written by Mandy Walker, founder of Focus on Cash. Updated October 2026. This explanation comes from the glossary inside Focus on Cash, so it matches the words you see in the app.
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