Formula
to calculate operating margin:
Operating
Margin = net profits from
operations /
sales.
Operating
margin definition and explanation:
The
operating margin is also referred to as operating profit
margin, or EBIT to sales ratio.
The
operating margin ratio determines whether the fixed costs are
too high for the production volume.
The operating margin ratio is included in the financial
statement ratio analysis spreadsheets highlighted in the
left column, which provide formulas, definitions,
calculation, charts and explanations of each ratio.
The operating margin is listed in our profitability
ratios.
The operating margin ratio and other ratios are key
to understanding financial statements. Our
ratio calculation spreadsheets reduce time
and effort in calculating decision making
ratios. They reduce risk for lenders and
investors and enable owners, managers and
consultants to increase productivity and
business profits. These spreadsheets are
bargain priced to provide a huge return
on investment. Click
here for more details. |
Spreadsheets to
calculate ratios (includes formulas, definitions,
explanations and charts):
See list
of ratios , or the financial statement ratio
analysis spreadsheets which are not highlighted in the
left column, to see which other ratios our spreadsheets
calculate, define and explain.
The operating margin or
EBIT to sales ratio may be included in our
custom 1, 3 or 5 period financial
statement ratio analysis spreadsheet.
Click here
to order excel
accounting spreadsheet to calculate 15 ratios with
formulas, definitions, calculations, charts, and
explanations for each ratio.
Order free 3 ratio
calculator spreadsheet. Current, quick and
debt-to-equity ratios with formulas, calculations,
charts and explanations. Email
us at 3ratios@bizwiz.ca. |