Operating MarginAnalyzing Firms
Operating Margin requires subtracting all of the company or firm’s operating costs and expenses from Gross Profit. Afterward, divide Operating Profit by Sales Revenue. Multiplying this number by 100 will express the Ratio in a Percentage.
Operating Margin allows companies and firms to be compared after operating expenses and costs of goods or services sold have been subtracted from revenue. The most important thing you should look for is the difference in trends between the Gross Margin Ratio, and the Ratio of Operating Margin. If you see the trend for the Ratio of Gross Margin trending upwards or remaining steady year over year while the Ratio of Operating Margin is decreasing steadily, the company has a problem with their operating expenses. You should investigate why. Dig through the notes within the operating expenses and costs section to discover new programs or policies resulting in increased expenses.
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International Economic Analysis:
- Major Currency Economic Summaries
- Performance of Major Imports and Exports
- Mandates of Central Banks versus Expectations
- Performance Indexes of Major Economies
- Economically Correlated Currency Projections
- Large Funds Currency Sentiment Readings
- List of Technical Indicators to Look For
- Occasional: Foregin Exchange Technicals Markups
American Markets Analysis:
- Summaries of American Economic Structure
- Performance of Major
- Federal Reserve Mandate versus Expectations
- Performance Indexes of U.S Economy
- Economically Correlated U.S Dollar Projections
- Large Trading Fund Index Sentiment Readings
- Market Wide Earnings Versus Valuations
- Fundamental Ranking of U.S Business Sectors
- Best and Worst Future Consensus Estimates
- Occasional: Firm Fundamental Strength Report
- List of Technicals to Look for While Trading
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