The Operating Profit Margin is a measure of how much income a company has left after paying its Operating Costs such as Rent and Salaries. It is calculated as Operating Profit divided by Revenue. This is measured on a historical basis.
A healthy operating margin is required for a company to be able to pay for its fixed costs, such as interest on debt.
A company's operating margin is most meaningfully compared against other companies in its own industry, as they will likely share similar cost structures. It is a good way to compares the quality of a company's activity to its competitors, specifically the company's pricing strategy and operating efficiency.
| Ticker | Name | Op Mgn | StockRank™ |
|---|---|---|---|
| LON:PRSR | PRS Reit | 191.84 | 96 |
| LON:SAFE | Safestore Holdings | 190.60 | 72 |
| LON:BBOX | Tritax Big Box REIT | 186.01 | 61 |
| LON:SAE | SIMEC Atlantis Energy | 179.69 | 79 |
| LON:BYG | Big Yellow | 133.29 | 50 |