Profit from core trading.
A worked example
Starting figures
- Revenue
- $400,000
- Direct costs
- $210,000
- Operating expenses
- $120,000
What it returns
- Operating margin
- 17.5%
- Operating profit
- $70,000
- Gross profit
- $190,000
- Overhead ratio
- 30.0%
How to read the results
With the defaults above, operating margin works out at 17.5%.