Segment Margin Formula

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Segment Margin refers to the profitability of a specific operating segment within a company. Check FAQs
SM=SPSR
SM - Segment Margin?SP - Segment Profit?SR - Segment Revenue?

Segment Margin Example

With values
With units
Only example

Here is how the Segment Margin equation looks like with Values.

Here is how the Segment Margin equation looks like with Units.

Here is how the Segment Margin equation looks like.

0.5882Edit=100Edit170Edit
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Segment Margin Solution

Follow our step by step solution on how to calculate Segment Margin?

FIRST Step Consider the formula
SM=SPSR
Next Step Substitute values of Variables
SM=100170
Next Step Prepare to Evaluate
SM=100170
Next Step Evaluate
SM=0.588235294117647
LAST Step Rounding Answer
SM=0.5882

Segment Margin Formula Elements

Variables
Segment Margin
Segment Margin refers to the profitability of a specific operating segment within a company.
Symbol: SM
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Segment Profit
Segment Profit refers to the profit generated by a specific operating segment of a company.
Symbol: SP
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Segment Revenue
Segment Revenue refers to the total sales or revenue generated by a specific operating segment within a company.
Symbol: SR
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.

Other formulas in Financial Modeling and Valuation category

​Go Return on Common Equity
RCE=NI-PDACE
​Go Segment Turnover
St=SRSA
​Go Segment Roa
SROA=SPSA
​Go Segment Debt Ratio
SDR=SLSA

How to Evaluate Segment Margin?

Segment Margin evaluator uses Segment Margin = Segment Profit/Segment Revenue to evaluate the Segment Margin, Segment Margin measures the proportion of segment revenue that remains as profit after deducting all segment-specific expenses. Segment Margin is denoted by SM symbol.

How to evaluate Segment Margin using this online evaluator? To use this online evaluator for Segment Margin, enter Segment Profit (SP) & Segment Revenue (SR) and hit the calculate button.

FAQs on Segment Margin

What is the formula to find Segment Margin?
The formula of Segment Margin is expressed as Segment Margin = Segment Profit/Segment Revenue. Here is an example- 0.588235 = 100/170.
How to calculate Segment Margin?
With Segment Profit (SP) & Segment Revenue (SR) we can find Segment Margin using the formula - Segment Margin = Segment Profit/Segment Revenue.
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