Operating margin

Operating margin is operating profit as a percent of revenue: what is left after making the product and running the company, before interest and tax. The guide on it moves stocks as much as revenue does, and wage growth is the cost few companies can dodge.

Go on

In MochaLearnLearn how to read US earnings
  • RevenueRevenue is the total money a company takes in from sales before any costs, the top line. Growth companies are judged…
  • Gross marginGross margin is revenue minus the direct cost of making the product, as a percent of revenue. It shows pricing power…
  • EBITDAEBITDA is earnings before interest, taxes, depreciation and amortisation: operating profit with debt costs and…
  • BuybackA buyback is a company buying its own shares and cancelling them, so the same profit is spread over fewer shares and…
  • Earnings season / earnings reportEarnings season is the weeks after each quarter ends when most US companies report, starting with the big banks around…
  • Magnificent 7The Magnificent 7 are Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta and Tesla, seven companies that drove most of…

Where it comes up