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URL:  https://boards.fool.com/gross-margin-question-20697759.aspx

Subject:  Gross margin question Date:  4/28/2004  12:53 PM
Author:  choli100 Number:  1358 of 2244

Is there a difference btw the terms "Operating Margin" and "Gross Margin".

Recently I was looking at JNJ and the Value Line Suvey says that their operating margin for 2003 was 30.5%. However, when I calculate it myself (revenue = 41862, gross profit = 29686) I come up with 71%. This leads me to believe that the two terms are just inverse where operating margin is cost of revenue / sales, and gross margin is gross profit / sales. Please advise.
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