Operating Margin (EBIT Margin): Operating income as a percentage of revenue.
Formula
Operating Margin = Operating Income / Revenue × 100Computable definition
The canonical formula in the GASP formula grammar. The MCP server compiles it to SQL over the datasets listed below.
metric.gross_margin - metric.opex_ratioUnit: percent (the formula yields an unscaled ratio)
Notes: Equals (Revenue - COGS - Operating expenses) / Revenue.
Data requirements
Grain: Monthly aggregate · Frequency: Monthly · Aggregation: aggregate (month) · Staged: no · Main source: Finance / ERP.
| Field | Dataset | Type |
|---|---|---|
cost | cost_event | decimal |
cost_function | cost_event | string |
event_date | cost_event | date |
period_start | financials | date |
revenue | financials | decimal |
Example SQL (Postgres)
SELECT (((CAST(((SELECT COALESCE(SUM(revenue), 0) FROM financials WHERE period_start >= :period_start AND period_start <= :period_end) - (SELECT COALESCE(SUM(cost), 0) FROM cost_event WHERE event_date >= :period_start AND event_date <= :period_end AND cost_function = 'infrastructure')) AS DOUBLE PRECISION) / NULLIF((SELECT COALESCE(SUM(revenue), 0) FROM financials WHERE period_start >= :period_start AND period_start <= :period_end), 0))) - ((CAST((SELECT COALESCE(SUM(cost), 0) FROM cost_event WHERE event_date >= :period_start AND event_date <= :period_end AND cost_function <> 'infrastructure') AS DOUBLE PRECISION) / NULLIF(((SELECT COALESCE(SUM(revenue), 0) FROM financials WHERE period_start >= :period_start AND period_start <= :period_end)), 0)))) AS operating_margin Access: recommended
sensitivity tier restricted,
access scope unscoped.
Guidance your policy engine enforces.
From an agent: with the GASP MCP server, call
lookup_metric({ "name": "Operating Margin (EBIT Margin)" }) or generate_query({ "metric": "Operating Margin (EBIT Margin)", "adapter": "<your adapter JSON>" }).
Benchmarks
- Below -50%: Heavy investment phase
- -50% to 0%: Growth mode
- 0-20%: Path to profitability
- Above 20%: Profitable and efficient
Related Metrics
Connected in the GASP relationship graph.
Upstream: what drives this
- Gross Margin component of Operating Margin (Core)
Downstream: what this drives
- Operating Margin drives Free Cash Flow (Finance)