"These are reflected on a company's income statement in the following sequence:
A company takes in sales revenue, then pays direct costs of the product or service.
What’s left is the gross margin. Then it pays indirect costs like company headquarters, advertising, and R&D.
What’s left is the operating margin. Then it pays interest on debt and adds or subtracts any unusual charges or inflows unrelated to the company’s main business with a pre-tax margin left over.
Then it pays taxes, leaving the net margin, also known as net income, which is the very bottom line."
https://www.investopedia.com/terms/p/profitmargin.asp
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