Operating Margins
The Fiefdom of Files Operating Margins 3rd of November 2025 Divide a company’s income by its revenue, and you get the operating margin. For some volume of sales that comes into the business, it gives an idea of what percentage is left as cash in the end. Barring some accounting shenanigans regarding where the bottom line is. The size of margins is often cited to explain how businesses behave: “Amazon was incentivized to move to cloud hosting and AWS as a higher-margin business than retail, whereas Google could not have been the first mover in hosting because advertising has higher margins.” It’s a compelling story, though hard to prove definitively as an important part of the company’s behavior. Here, let’s instead look at some cold hard empirical data about operating margins of real…
