According to Advanced Drainage Systems 's latest financial reports and stock price the company's current Operating Margin is 22.32%. At the end of 2023 the company had an Operating Margin of 21.40%.
The operating margin is a key indicator to assess the profitability of a company. Higher operating margins are generaly better as they show that a company is able to sell its products or services for much more than their production costs. The operating margin is calculated by dividing a company's earnings by its revenue.