A company's operating margin is the profit it makes on a dollar of sales after accounting for the direct costs involved in earning the revenue.

Gross profit margin and operating profit margin are two metrics used to measure a company’s profitability. Gross profit margin measures production cost efficiency. Operating profit margin includes ...

Amanda Bellucco-Chatham is an editor, writer, and fact-checker with years of experience researching personal finance topics. Specialties include general financial planning, career development, lending ...

Profit margin conveys the relative profitability of a firm or business activity by accounting for the costs involved in producing and selling goods. Margins can be computed from gross profit, ...

What’s a good profit margin for your business? There’s a quick answer to this question. A good profit margin is usually 10% or higher for most businesses, though this varies significantly by industry.