Brazil Listed Companies, Operating Margin

## What this measures

Total operating income before financial result and taxes (account 3.05, EBIT) divided by total sales revenue, summed over companies registered with Brazil's securities regulator (CVM) in Category A, the issuers allowed to list shares on B3, that filed annual statements with a sales revenue line for the year (consolidated statements where filed). Banks and insurers are left out: they report financial intermediation income instead of sales. Annual, fiscal years ending 2010 onward.

## Why it matters

Aggregate profitability of Brazil's listed corporate sector, before interest costs, which are high and volatile in Brazil.

## How to read it

A ratio of totals, so the largest companies weigh most; compare years rather than reading the level alone.

## What it does not say

Companies registered in a year count in that year, including those that later delisted, so the series has no survivorship bias, but the population changes as companies list and delist. A listed subsidiary of a listed parent is counted in both. Figures are nominal reais (no inflation adjustment). The latest year is published once at least 80% as many companies have filed as the year before.

## Source

Palanor calculation from CVM, Portal de Dados Abertos (https://dados.cvm.gov.br/), annual financial statements (DFP), Open Database License (ODbL).