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Operating Margin





EXAMPLE


Citigroup

In the example of Citigroup, Inc. 2003:
  • Revenues: 94,713

  • Income from continuing operations: 26,333 (revenue less "interest expense", "operating expenses" and "benefits, claims and credit losses")

  • income / net revenue

26,333/77,442=0.34, the operating margin is 34%.

Without "benefits, claims and credit losses":
  • Revenues, net of interest expense: 77,442

  • Income from continuing operations: 38,274 (26,333+11,941) (77,442-39,168)

  • (net revenue - operating expenses) / net revenue

38,274/77,442=0.49, the operating margin is 49%.


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