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:SHC | Shaftesbury Capital | 414.92 | 28 |
| LON:PRSR | PRS Reit | 191.84 | 93 |
| LON:SAE | SIMEC Atlantis Energy | 179.69 | 69 |
| LON:DEC | Diversified Energy | 133.72 | 69 |
| LON:BYG | Big Yellow | 133.29 | 36 |