grepcent / static financial knowledge base

Informational only - not investment advice.

Reading Financial Data - Step by Step / Reading a company's financials

Gross, operating, and net margin

Margins turn income-statement dollars into percentages of revenue.

As of: 2025-10-31.

Concept

A margin is a numerator divided by revenue. The numerator changes the question you are asking.

Worked Example: Compute three Apple margins

  1. Start with AAPL revenue: $416.2 billion for fiscal 2025.
  2. Gross margin = gross profit / revenue = $195.2 billion / $416.2 billion = 46.91%.
  3. Operating margin = operating income / revenue = $133.1 billion / $416.2 billion = 31.97%.
  4. Net margin = net income / revenue = $112.0 billion / $416.2 billion = 26.92%.

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Sources

Informational only - not investment advice.