Operating margin

Operating profit as a share of revenue — what the core business keeps from each sale.
Also known as: Operating profit margin

What it is

Operating margin divides operating profit by revenue, showing what is left after cost of goods and SG&A.

Formula

Operating margin = operating profit ÷ revenue × 100%. KRW 120 billion of operating profit on KRW 1 trillion of sales is a 12% margin.

What to keep in mind

Rising sales with a falling margin can signal cost pressure or price competition. Normal levels vary widely by industry.

Where to check

Revenue and operating profit come from quarterly filings on DART. The stock screener on this site has a ready-made filter for an operating margin of 20% or more, and each stock page shows the margin for every quarter beneath the operating profit, so you can see whether it is widening or narrowing.

This explanation is general information, not investment advice. Rules reflect September 2026 and may change; check official exchange and broker notices.