operating margin
[/ˈɑːpəreɪtɪŋ ˈmɑːrdʒɪn/]
nounpl: operating margins
margem operacional
1. The percentage of revenue remaining as profit after paying operating expenses, calculated as operating income divided by total revenue
The company improved its operating margin by reducing production costs.
A empresa melhorou sua margem operacional reduzindo custos de produção.
2. A financial metric that measures how much profit a company makes on each dollar of sales before interest and taxes
With an operating margin of 15%, the business demonstrates healthy operational efficiency.
Com uma margem operacional de 15%, o negócio demonstra eficiência operacional saudável.
3. An indicator of a company's profitability and operational performance relative to its revenue
Investors closely monitor the operating margin as a sign of management efficiency.
Investidores monitoram de perto a margem operacional como indicador de eficiência gerencial.
Operating margin is a critical metric in both Brazilian and American business cultures, extensively used by investors, analysts, and company management to assess operational efficiency. In Brazil, this metric is particularly important for evaluating public companies (Bovespa-listed) and is frequently discussed in financial reports. In the USA, it's a standard metric on Wall Street and is closely watched by institutional investors and hedge funds.
NYC Slang
op margin (informal shorthand used by Wall Street traders and financial analysts)
Related Idioms & Phrases
healthy operating margin
shrinking operating margin
expanding operating margin
maintain operating margin
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