Revenue, costs & profit · Core
Operating margin
Also called: EBIT margin, operating profit margin
ELI5
Operating profit divided by revenue.
Used in conversation
“Keep operating margin on the dashboard, but show the definition and reporting period beside it.”
Pitch context
You will see “Operating margin” in financial models, budgets, board packs and investor materials when the discussion reaches revenue, costs & profit.
Why it matters: In revenue, costs & profit, different calculation boundaries, periods or accounting treatments can change the number and the decision.
Caution
Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.
Sources & evidence · 4
Direct term-level sources and supporting source families.
- IFRS Foundation — IFRS GlossaryDirect source · primary · checked 2026-08-16
- Financial Accounting Standards Board — FASB Accounting Standards CodificationDirect source · primary · checked 2026-08-16
- U.S. Securities and Exchange Commission — Non-GAAP Financial Measures — Compliance and Disclosure InterpretationsDirect source · primary · checked 2026-08-16
- U.S. Small Business Administration — Break-even pointDirect source · primary · checked 2026-08-16