operational margin
[/ˌɑːpəˈreɪʃənəl ˈmɑːrdʒɪn/]
nounpl: operational 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's operational margin improved from 12% to 15% after implementing cost-cutting measures.
A margem operacional da empresa melhorou de 12% para 15% após implementar medidas de redução de custos.
2. A financial metric that measures how efficiently a company manages its core business operations relative to sales
Investors closely monitor the operational margin as an indicator of business efficiency.
Os investidores monitoram de perto a margem operacional como indicador da eficiência comercial.
3. The difference between operating income and operating expenses expressed as a percentage of revenue
A healthy operational margin typically indicates strong management and operational control.
Uma margem operacional saudável geralmente indica uma gestão forte e controle operacional.
In both Brazil and the USA, operational margin is a critical metric in financial analysis and investor relations. Brazilian companies increasingly focus on this metric in quarterly earnings reports, reflecting the importance of operational efficiency in competitive markets. The term is universally understood in corporate, banking, and investment sectors across both countries.
Related Idioms & Phrases
improve operational margins
maintain healthy operational margins
squeeze operational margins
operational margin compression
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