Operating margin
What survives of each dollar of sales after running the business.
In plain English
Out of every dollar of sales, what is left after the cost of running the business?
Try it with pocket-money numbers. Sell $100 of groceries; running the store costs $85. The $15 left is a 15% operating margin.
That is the whole calculation. The tables below run it on what 516 companies actually filed.
| Formula | Operating income ÷ revenue |
|---|---|
| Companies reporting it | 516 of 573 |
| Median | 15.0% |
| Middle half | 6.0% – 24.7% |
| Range | -636.0% – 86.9% |
When it lies. Only comparable inside an industry. A supermarket at 4% may be a better business than a software firm at 25%.
By sector
| Sector | n | Median | 25th | 75th |
|---|---|---|---|---|
| Banks & insurers | 37 | 28.3% | 16.2% | 35.9% |
| Utilities | 53 | 23.2% | 20.0% | 28.1% |
| Financial services | 31 | 21.5% | 12.1% | 27.5% |
| Real estate | 30 | 20.0% | 10.6% | 49.9% |
| Technology | 45 | 16.2% | 7.2% | 29.2% |
| Health care | 44 | 14.1% | 8.4% | 22.3% |
| Energy | 35 | 12.0% | 1.8% | 24.4% |
| Consumer discretionary | 44 | 11.8% | 4.9% | 17.6% |
| Communications | 31 | 10.9% | -3.5% | 17.2% |
| Industrials | 75 | 10.8% | 5.6% | 18.1% |
| Consumer staples | 43 | 9.2% | 3.3% | 16.2% |
| Materials | 46 | 7.7% | -2.3% | 13.5% |
| not classified | 2 | -274.4% | -274.4% | 2.2% |
Highest operating margin
| # | Ticker | Company | Sector | Operating margin |
|---|---|---|---|---|
| 1 | SUNB | Sunbelt Rentals Holdings | Consumer discretionary | 86.9% |
| 2 | ALLY | Ally Financial | Banks & insurers | 84.5% |
| 3 | GLPI | Gaming & Leisure Properties | Real estate | 75.3% |
| 4 | BAM | Brookfield Asset Management | Financial services | 74.2% |
| 5 | REG | Regency Centers | Real estate | 72.3% |
| 6 | L | Loews | Banks & insurers | 71.9% |
| 7 | VICI | VICI Properties | Real estate | 70.4% |
| 8 | ACT | Enact Holdings | Financial services | 69.5% |
| 9 | VRSN | Verisign | Technology | 67.7% |
| 10 | RPRX | Royalty Pharma | Health care | 65.6% |
| 11 | CME | CME Group | Financial services | 64.9% |
| 12 | NNN | NNN Reit | Real estate | 63.6% |
| 13 | NVDA | Nvidia | Technology | 60.4% |
| 14 | MA | Mastercard | Financial services | 57.6% |
| 15 | AM | Antero Midstream | Utilities | 54.2% |
| 16 | VNO | Vornado Realty Trust | Real estate | 52.5% |
| 17 | OHI | Omega Healthcare Investors | Real estate | 52.5% |
| 18 | BSTT | Blackstone Real Estate Income Trust | Real estate | 50.7% |
| 19 | UNIT | Uniti Group | Communications | 50.3% |
| 20 | NEM | Newmont | Materials | 50.0% |
Lowest
| # | Ticker | Company | Sector | Operating margin |
|---|---|---|---|---|
| 516 | ASPI | ASP Isotopes | Materials | -636.0% |
| 515 | TDTH | Trident Digital Tech Holdings | Industrials | -321.9% |
| 514 | OCG | Oriental Culture Holding | not classified | -274.4% |
| 513 | SIDU | Sidus Space | Communications | -250.0% |
| 512 | SCLX | Scilex Holding | Health care | -147.4% |
| 511 | UAMY | United States Antimony | Materials | -81.3% |
| 510 | SEED | Origin Agritech | Consumer staples | -63.8% |
| 509 | RILY | BRC Group Holdings | Financial services | -50.5% |
| 508 | FMC | FMC | Materials | -47.0% |
| 507 | STEP | StepStone Group | Financial services | -44.7% |