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I was looking at fundamentals for SalesForce (CRM) and noticed that their profit margin higher than operating margin:
Profitability
Profit Margin 1.48%
Operating Margin (ttm) 0.21%
In my understanding margins should go from higher to lower in this order:
Could anybody explain how is it possible for operating margin be higher than profit margin?
Looking at the financials on the same site, https://finance.yahoo.com/quote/CRM/financials?p=CRM:
Operating income was $64MM. Then other income was $50MM and Tax expense was $-154MM (that is income expense is adding to income), less interest expense of $89MM. For a net imcome of $180MM.
Net income of $180MM is greater than operating income of $64MM, so profit margin will be greater than operating margin.
The stinky pile of poo is such a large negative income tax expense. That will not be sustainable and deserves scrutiny.
