Name: Operating Profit Margin

Definition: Operating profit margin focuses on profits from the company’s core business — before interest payments and taxes. It reflects how well the business manages operating costs relative to sales. Strong operating margins show efficient day-to-day operations. Shrinking margins may reveal rising overhead, pricing weakness, or declining efficiency.

Interpretation:
• In '2020', ACB's operating profit margin was -171.8%, highlighting profit earned from core business operations. Industry average for Medicinal Chemicals and Botanical Products in '2020' stood at -171.8%.
• In '2021', ACB's operating profit margin was -100.6%, highlighting profit earned from core business operations. The increase since '2020' reflects strengthening financial performance. Industry average for Medicinal Chemicals and Botanical Products in '2021' stood at -53.3%. Industry average increased by 118.5% compared to previous year.
• In '2022', ACB's operating profit margin was -99.1%, highlighting profit earned from core business operations. The increase since '2021' reflects strengthening financial performance. Industry average for Medicinal Chemicals and Botanical Products in '2022' stood at -90.4%. Industry average declined by 37.1% from previous year.
• In '2024', ACB's operating profit margin was -10.0%, highlighting profit earned from core business operations. The increase since '2022' reflects strengthening financial performance. Industry average for Medicinal Chemicals and Botanical Products in '2024' stood at -41.7%. Industry average increased by 48.7% compared to previous year.
Overall, ACB's operating profit margin has been volatile but showed an upward trend over the past 4 years.

Formula: Operating Profit Margin = Operating Income / Revenue

Good Range: Often 10%-30% depending on business model.