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Glossary

What is Operating margin?

Operating margin is operating profit, before finance costs and tax, as a percentage of revenue.

It shows the profitability of the core business after all operating expenses, independent of how the company is financed.

Formula

Operating margin = operating profit ÷ revenue × 100

Operating margin on the Pakistan Stock Exchange

Across 448 listed companies with the figure, the median is 9.1%.

Operating margin of the largest PSX companies
Largest companiesOperating margin
PIAHCLB PIA Holding Company LimitedB 67.5%
OGDC Oil & Gas Development Company Limited 42.0%
UBL United Bank Limited 70.2%
MEBL Meezan Bank Limited 68.2%
FFC Fauji Fertilizer Company Limited 20.6%