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 '2022', AERT's operating profit margin was 16.1%, highlighting profit earned from core business operations. Industry average for Professional Services in '2022' stood at -0.9%.
• In '2023', AERT's operating profit margin was 4.4%, highlighting profit earned from core business operations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Professional Services in '2023' stood at -1.6%. Industry average declined by 0.7% from previous year.
• In '2024', AERT's operating profit margin was 4.1%, highlighting profit earned from core business operations. The decline from '2023' may indicate some operational or financial challenges. Industry average for Professional Services in '2024' stood at -13.3%. Industry average declined by 11.7% from previous year.
Overall, AERT's operating profit margin has been volatile but showed a downward trend over the past 3 years.

Formula: Operating Profit Margin = Operating Income / Revenue

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