Operating income margin change is a measure of how much a company’s operating income changes when its revenue changes. It shows how efficient a company is at managing its costs and increasing its profits. It is calculated as a percentage of the difference between the current and previous year’s operating income and revenue. The formula for operating income margin change is:
Operating income margin change = ((Current year operating income - Previous year operating income) / (Current year revenue - Previous year revenue)) * 100
Where:
- Operating income is IS011,
is_oper_income
- Revenue is IS001,
is_sales_revenue_turnover