The Motley Fool Discussion Boards

Previous Page

Learning to Invest / Terms, Definitions, & Jargon


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.
Copyright 1996-2020 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us