Definition

Operating margin

Operating income as a share of revenue — what remains after both the direct cost of sales and the operating expenses (R&D, sales & marketing, G&A) that run the business. It measures how much of the gross margin survives the cost of operating the company.

Formula

Operating margin = Operating income ÷ Revenue

Drivers — what actually moves it

Gross margin: everything that moves gross margin flows straight through.
Opex leverage: when revenue grows faster than R&D, S&M and G&A, margin expands — and vice versa.
One-time items: impairments and restructuring charges inside operating income distort single-year comparisons.

Where to find it in the filing

Income statement (Consolidated Statements of Operations). 10-K Item 8 — operating income (or 'income from operations') below the expense lines.

XBRL concepts Echelon grounds to: OperatingIncomeLoss

Prove it on a model

Comps (fundamentals) on AAPL’s filing“How do you build a comps table?”

Sector caveats — where this breaks

Financials rarely present a comparable 'operating income' line — their operating structure is interest-based.

Drill it in a live lesson Gross margin Net margin EBITDA Operating leverage

Companies filing operating margin

The same metric on a real filer, computed from the filing and cited to the accession.

NVIDIA operating margin Apple operating margin Adobe operating margin Analog Devices operating margin

Drill operating margin on another filer

Graded exercises that use this metric — each one against a different company's own filed figures.

NVIDIA's operating margin: the leverage read Apple's operating margin Adobe's operating margin Analog Devices' operating margin Autodesk's operating margin Applied Materials' operating margin

Educational use only — not investment advice. Figures come from public SEC filings; Echelon teaches you to analyze data, it never recommends buying or selling any security.