Operating margin

In economics, operating margin is the ratio of operating income divided by sales revenue. See the sample income statement.

Contents

1 Example 1.1 Citigroup 2 See also 3 External links 3.1 Example

Example

Citigroup

In the example of Citigroup, Inc. 2003:

• Revenues: 94,713
• Income from continuing operations: 26,333 (revenue less "interest expense", "operating expenses" and "benefits, claims and credit losses")

income / net revenue
 26,333/77,442=0.34, the operating margin is 34%.
 

Without "benefits, claims and credit losses":

• Revenues, net of interest expense: 77,442
• Income from continuing operations: 38,274 (26,333+11,941) (77,442-39,168)

(net revenue - operating expenses) / net revenue
 38,274/77,442=0.49, the operating margin is 49%.
 

See also

• Efficiency ratio
• Profit margin

External links

• Operating Margin

Example

• C: Income Statement for CITIGROUP INC - Yahoo! Finance
• Citigroup - Annual Reports & Proxy Statements

See also: Operating margin, Economics, Efficiency ratio, Finance, Operating income, Profit margin, Sales revenue