Tag
#operating-margin
2 articles
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Can a 3% Margin Business Earn 20% ROCE? Here’s the math
Yes. A 3% margin can produce roughly 20% ROCE when each rupee of average capital employed generates about ₹6.70 of annual income. Here is the arithmetic.
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Operating Margin Explained: What It Reveals About a Business
Operating margin is operating profit divided by revenue: the share of each rupee of sales left after core running costs, before interest and tax.
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