Operating Margin = Operating Income ÷ Revenue
Operating Income = Revenue − Operating Expenses
Use operating income from the income statement
Use total revenue from the income statement
Divide operating income by revenue
Multiply the result by 100 to get a percentage
Formula: Operating Margin (%) = (Operating Income ÷ Revenue) × 100
Example: If Operating Income is 20,000 and Revenue is 100,000, Operating Margin = 20%