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Gross Margin and Operating Margin are two key financial terms to understand if you want to evaluate the financial performance of a company on the income statement or Pamp;amp;L (profit and loss statement). In this video, we will discuss the definition of Gross Margin and Operating Margin, and walk through the calculation of Gross Margin and Operating Margin for four well-known global companies in different industries. If you like my story and the explanation is helpful, then please press the like button below the video. Gross Margin and Operating Margin are financial terms used in the income statement. We will cover the income statement or Pamp;amp;L for a manufacturing company first, and then show variations on the wording for companies in other industries. The top line of an income statement is revenue: the sum of the invoices sent to customers for the goods that you have delivered or the services that you have rendered, assuming that all invoices meet revenue recognition criteria.
