How much of every revenue dollar is left as profit from actually running the business.
| Company | operating margin | Health Score |
|---|---|---|
| Apple Inc. | 29.8% ✓ | 47.5 |
| COCA COLA CO | 24.7% | 50.5 |
✓ = better on this metric alone (higher wins). Values refresh from live data on every request.
Operating margin is operating income divided by revenue. It shows how much of each dollar of sales survives as profit after the core costs of running the business (cost of goods, salaries, R&D, marketing) — before interest, taxes, and one-off items get involved.
Operating margin = operating income ÷ revenue × 100. Because it stops before interest expense and taxes, it's a cleaner read on the underlying business than net margin, which can swing around from things that have nothing to do with day-to-day operations (a big tax refund, a debt refinancing, a legal settlement).
Higher generally means more pricing power or cost efficiency, but the "normal" range varies enormously by industry — a grocery chain and a software company both being well-run tells you nothing from comparing their margins directly, since one industry structurally runs on thin margins and high volume, the other on the opposite.
A margin that jumped sharply in a single year is worth double-checking for one-time gains (an asset sale, a legal settlement) rather than a genuine, repeatable improvement in the business — the site's multi-year financials table exists exactly so you can see whether a good margin is a trend or a one-off.
What is ROE (Return on Equity)? What is the P/S ratio?
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