Profitability
What is Operating Profit Margin (OPM)?
Operating margin measures the profit remaining after all operating expenses, revealing how efficiently a company runs its core business operations.
Formula
Operating Margin = Operating Profit (EBIT) ÷ Revenue × 100
How to Interpret
Increasing operating margins suggest improving operational efficiency and potentially operating leverage. Compare across competitors.
Typical Ranges
US sectors: Software 25–40%, Pharma 25–35%, Consumer Staples 15–25%, Industrials 10–18%, Retail 5–10%. Or international markets like India: IT 20–30%, FMCG 15–25%, Banking 30–50%, Manufacturing 10–20%.
Find Stocks Using This Metric
Use the Equiscale Stock Screener to filter US or Indian stocks by Operating Profit Margin.