S&P 500 Aggregate Operating Profit Margin (TTM)

Live value temporarily unavailable.

Source: Company filings (aggregated)

Data updated daily

What it measures

The S&P 500 operating margin measures aggregate operating income (EBIT) as a percentage of aggregate revenue for index constituents on a trailing-twelve-month basis. Operating income deducts COGS, selling expenses, general and administrative costs, and R&D from revenue, but excludes interest and taxes. A reading of 15% means the index generates $15 of operating profit per $100 of revenue before financing and tax costs.

Why it matters

Operating margin isolates the profitability of the core business by stripping out capital structure and tax effects, making it the cleanest cross-company and cross-cycle comparator of operational efficiency. Sustained operating margin expansion signals either revenue growth outpacing fixed-cost growth (operating leverage) or successful cost discipline. Compression signals rising wages, input costs, or SG&A investment outpacing revenue. At the index level, operating margin trends lead earnings growth: a margin squeeze today predicts earnings disappointment in coming quarters even if revenue growth holds.

How it is calculated

Operating Margin (TTM) = Σ TTM Operating Income ÷ Σ TTM Revenue × 100

LENSE computes the S&P 500 operating margin as the ratio of aggregate TTM operating income to aggregate TTM revenue — not a simple average of per-company margins. Operating income per constituent is sourced from as-reported quarterly income statements; TTM figures are constructed by summing the four most recently reported quarters. Constituents with zero or negative revenue are excluded. Index constituency is resolved point-in-time via the S&P 500 point-in-time index constituency.

Recent (monthly)

Recent data unavailable.

Data source: Company filings (aggregated). Computed and published by LENSE Analytics.