Operating Margin AnalysisOperating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Operating Margin Over Time Pattern
About Operating MarginA good Operating Margin is required for a company to be able to pay for its fixed costs or pay out its debt which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against firm's competitors.Compare to competition
Based on recorded statements SolarCity Corporation has Operating Margin of -119.4%. This is much lower than that of the sector, and significantly lower than that of Construction industry, The Operating Margin for all stocks is over 1000% higher than the company.