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Learning to Invest / Terms, Definitions, & Jargon


Subject:  Re: Gross margin question Date:  4/28/2004  1:33 PM
Author:  formorears Number:  1359 of 2244

Hi choli100,

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

Yes, there is a difference...

gross profit = sales - cost of sales
operating income = gross profit - operating expenses

gross margin = gross profit / sales
operating margin = operating income / sales

Hope this helps.

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