Operating margin

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In business, operating margin is the ratio of operating income (operating profit in the UK) divided by net sales.

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

[edit] Example

[edit] 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%.

[edit] See also

• Efficiency ratio
• Profit margin

[edit] External links

• Operating Margin

[edit] Example

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