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Profitability

Operating margin

Also called: EBIT margin

Operating profit as a share of revenue: how many cents of each euro of sales remain as operating profit.

Operating margin = operating profit ÷ revenue. A 20% margin means that for every €100 of sales, €20 is left after running the business.

Margins differ hugely between industries: supermarkets typically work with low single-digit margins, while luxury houses or chip-equipment makers can reach far higher. Comparing margins is most useful between companies in the same industry, measured the same way.

General explanation for education only, not investment advice. Company-specific definitions can differ; each breakdown uses the company’s own.