2006-12-18 10:30:41 · 3 answers · asked by humin1_2004 1 in Business & Finance ➔ Investing
Profit margine is a ratio which is Profits/Sales. Operating margine in the same vain is operating- profits/Sales.
2006-12-19 03:55:27 · answer #1 · answered by Mathew C 5 · 0⤊ 0⤋
RE: What is the difference between the profit margin and the operating margin? What I gathered from the articles I have read is that both concepts are the same, except that operating margin is a percentage that still doesn't reflect interest and tax deductions for net income sales. Am I right?
2016-05-23 05:27:50 · answer #2 · answered by Anonymous · 0⤊ 0⤋
These terms are sometimes used interchangably. A company's operating [profit] margin usually refers to its earnings before interest, taxes (EBIT) and other "non-operating" sources of expenses or income (such as discontinued operations) as a percentage of sales. Profit margin may refer to that, or perhaps more commonly, to net income profit margin (Net Margin), which is the company's total after-tax income (the "bottom line") divided by sales (or total revenue).
2006-12-18 13:49:54 · answer #3 · answered by Timothy G 1 · 0⤊ 0⤋