What is the Operating Margin of a Stock?
What is the Operating Margin of a Stock? Welcome to BeachBum Trading, where we help you navigate the world of investing. Today, in this short [What is the Operating Margin of a Stock?] video 🎥, we'll be discussing an important factor in evaluating stock performance - the operating margin. The operating margin is a key metric that measures the profitability of a company's core business operations. It shows the percentage of profit a company generates from its operations after deducting its operating expenses. Calculating the operating margin is simple - just take the operating income (total revenue minus operating expenses) and divide it by the total revenue. This percentage helps investors determine how efficiently a company is generating profits. But why is the operating margin important? Firstly, it reflects the company's financial stability and its ability to withstand market fluctuations. A high operating margin also indicates that the company is effectively controlli...